Vonage reaches 2m subscribers, far from profitability

06 September 2006

Vonage Holdings Corp yesterday announced it had passed the 2 million-subscriber mark, but at least one analyst said the company needs to more than double its size to reach profitability.

Stock analyst Albert Lin at American Technology Research said it would take at least two or three years for Vonage to become profitable.

But while having slightly more than 2 million customers means Vonage is a small nationwide phone service provider compared to its much larger telco and cable rivals, Vonage seems to be hanging tough.

The company's share price has limped in the $7 to $8 range on Wall Street, which is more than half below its IPO price in mid-May. But the stock has edged up recently to nearly $9.

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