Revenue Generating Unit - RGU

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.

BREAKING DOWN '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.