Revenue generating unit (RGU)

Revenue generating unit (RGU),

Definition of Revenue generating unit (RGU):

  1. Revenue generating units (RGUs) are subscribers — either individuals or businesses, but most commonly applied to individuals — who pay for monthly services such as mobile phone or cable. RGUs as a term is interchangeable with "customer relationships," "customers" or simply "subscribers." Whatever a company decides to name them, it compiles this data, segments, and analyzes. RGU figures are often used to calculate average revenue per user (ARPU), another key metric for the telecom and cable industries.

  2. A revenue generating unit (RGU) is an individual service subscriber who generates recurring revenue for a company. This is used as a performance measure for management, analysts, and investors. RGUs are tracked by telecom companies, cable companies and other businesses that have a base of subscribers for a service. RGU growth can occur organically or through acquisitions.

  3. Total sum of analog cable, digital cable and internet subscribers that generates revenue to a company. For example, a subscriber can be considered two RGUs if they subscribe to internet access and land phone. RGU is a good indicator of the financial status of a company as higher RGU means more revenue.

Meaning of Revenue generating unit (RGU) & Revenue generating unit (RGU) Definition