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.

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.


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