Vonage 3Q profit shrinks as customers pay less

Vonage third-quarter profit shrinks as customers pay less for phone service

Associated Press

HOLMDEL, N.J. (AP) -- Vonage Holdings Corp. on Wednesday said that its third-quarter net income fell 18 percent compared to last year, as customers paid less for their Internet calling services.

The company earned $13.2 million, or 6 cents per share, in the July to September quarter, down from $16.0 million, or 7 cents per share, a year earlier.

Revenue slid 4 percent to $207.6 million from $216.5 million. The number of phone lines Vonage serves fell 1 percent to 2.37 million, while the average monthly revenue per line fell 2.8 percent to $29.31.

The company reported a net gain of 9,440 lines during the quarter. The number has been on a slow downward trend for the last two years.

Its shares rose 5 cents, or 2.2 percent, to $2.29 in morning trading. Its shares have traded in a 52-week range of $1.63 to $3.42.

The Holmdel, N.J., company provides phone services over the Internet for customers in the United States, Canada and the U.K.

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