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. Average Revenue Per Unit - ARPU

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

    A set of quantifiable measures that a company or industry uses ...
  5. Recurring Revenue

    The portion of a company's revenue that is highly likely to continue ...
  6. Revenue

    The amount of money that a company actually receives during a ...
Related Articles
  1. Industry Handbook
    Investing Basics

    Industry Handbook

  2. Introduction To Fundamental Analysis
    Markets

    Introduction To Fundamental Analysis

  3. Capital Structure
    Investing

    Capital Structure

  4. Variable Costs
    Investing

    Variable Costs

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center