Vonage Shrinks Losses, Subcribers For First Quarter

May 8, 2008 1:52 p.m. EST

Holmdel, NJ (AHN) - Internet phone company Vonage announced Thursday a first-quarter loss of $8.9 billion, an improvement from the $72.3 million lost during the same period in 2007. However, the company lost 30,000 subscribers during the quarter, compared to adding 56,000 customers in the fourth-quarter of last year.

Company revenue increased by $224.6 million for the first-quarter while Vonage slashed costs, the average revenue per line rising slightly to $28.85 from $28.31. Vonage CEO Jeffrey Citron told the Wall Street Journal April was a "turning point in customer care." Citron said the company has cut marketing costs to boost customer service.

However, despite the increased emphasis on customers, Vonage's turnover rate rose to 3.3 percent from 3 percent.

Citron said he expects revenue to increase in the third-quarter. The company will begin offering Vonage Broadband, reselling Covad Communications service.