Revenue Generating Unit - RGU
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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.
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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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