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AMPU

Author: Paulo Nunes (Economist, Professor and Business Consultant)

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Date Created: 25/05/2011

Summary: The term AMPU (Average Margin Per Unit) is an economical indicator used in economic and financial analyses of...  see full article

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AMPU


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AMPU Concept

The term AMPU (Average Margin Per Unit) is an economical indicator used in economic and financial analyses of companies and seeks to evaluate the company’s capacity to generate profits or margin per unit. Is a highly used indicator in sectors such as telecommunications and other sectors based in subscription, meaning the provided profit by each user of the services provided by the company and allowing to make comparisons between different operators. Its calculation is generally made by ratio between the total incomes subtracted from the total costs and the number of subscribed users.

Many times, this indicator is also used to measure the average margin provided by new clients in comparison with old clients or to compare the medium average of new services in comparison to pre existent services.

An alternative indicator to AMPU is ARPU, also widely used by telecommunication companies. However, ARPU, instead of AMPU, uses the income and mot the margin to measure performance, which has evident disadvantages.

 

 

Translated from Portuguese by Susana Saraiva, Portuguese-English and English-Portuguese translation specialist. Contact: spams@sapo.pt