Revenue Generating Unit - RGU

AAA

DEFINITION of 'Revenue Generating Unit - RGU'

An individual service subscriber who generates recurring revenue for a company. This is used as a performance measure with analysts, investors and other participants. Investors will look for a company to increase its revenue generating units over time because this suggests that the company is remaining competitive.

INVESTOPEDIA EXPLAINS 'Revenue Generating Unit - RGU'

RGUs are a very attractive revenue sources for companies because each unit will continue to generate revenue into the future. Cable and telephone companies generally break down their subscribers into revenue generating units.

RELATED TERMS
  1. Self-Liquidating Loan

    A type of short- or intermediate-term credit that is repaid with ...
  2. Average Margin Per User - AMPU

    A widely used metric for gauging the success of businesses in ...
  3. Revenue Per User - RPU

    A ratio used to express the profitability of a company on a per-user ...
  4. Revenue

    The amount of money that a company actually receives during a ...
  5. Average Revenue Per Unit - ARPU

    A measure of the revenue generated per user or unit. Average ...
  6. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses ...
Related Articles
  1. Investing Basics

    Industry Handbook

    In this feature, we take an in-depth look at the various techniques that determine the value and investment quality of companies from an industry perspective.
  2. Markets

    Introduction To Fundamental Analysis

    Learn this easy-to-understand technique of analyzing a company's financial statements and reports.
  3. Economics

    What is Value Added?

    Value added is used to describe instances where a firm takes a product and adds a feature that gives customers a greater sense of value.
  4. Economics

    What is a Wholly Owned Subsidiary?

    A company whose common stock is 100% owned by another company, called the parent company.
  5. Economics

    What is the Breakeven Point?

    In general, when gains or revenue earned equals the money spent to earn the gains or revenue, you’ve hit the breakeven point.
  6. Investing

    What's Marginal Revenue?

    In microeconomics, marginal revenue is the additional revenue generated by increasing sales revenue by one unit. Another way of saying this is that the marginal revenue is the revenue generated ...
  7. Investing

    What is the Debt-To-Capital Ratio?

    The debt-to-capital ratio is used to measure a company’s use of financial leverage. The ratio is the company’s total debt, divided by the sum of the company’s equity plus total debt.
  8. Investing

    Understanding Accumulated Depreciation

    Depreciation is a rough approximation, in dollar terms, of the wear and tear on an asset. So the accumulated depreciation is the aggregate of the wear and tear on the asset from all prior time ...
  9. Professionals

    What is Backward Integration?

    Integration happens when one company owns another business in its supply chain.
  10. Investing

    What's a Distribution Channel?

    A distribution channel is a chain of businesses through which a manufacturer sends his products to get them to a final buyer. It may involve wholesalers, distributors, agents and retailers. Companies ...

You May Also Like

Hot Definitions
  1. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  2. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  3. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  4. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  5. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  6. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
Trading Center