ARPU Concept
The term ARPU (Average Revenue Per Unit)
is an economical indicator used in company’s
economical and financial
analyses and seeks to evaluate the company’s capacity to generate income
through each 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 é 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 income provided by new clients in comparison with
old clients or to compare the medium income of new services in
comparison to pre existent services.
Translated from Portuguese
by Susana Saraiva, Portuguese-English and English-Portuguese translation
specialist. Contact: spams@sapo.pt.
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