Vonage Holdings Corp. Reports Fourth Quarter and Full Year 2013 Results
Fourth Quarter 2013
-- Company Closes Vocalocity Acquisition --
-- Third Consecutive Quarter of Positive Net Line Additions --
-- Revenue of $211 Million --
-- Adjusted EBITDA1 of $25 Million --
-- Net Income of $10 Million or $0.05 per Share Excluding Adjustments2 --
Full Year 2013
-- Churn Declined to 2.5% for Full Year --
-- Adjusted EBITDA1 of $110 Million --
-- Net Income of $52 Million or $0.24 per Share Excluding Adjustments2 --
-- Revenue of $829 Million --
-- Positive Net Line Additions for the Year --
-- Repurchased 19 Million Shares for $56 million --
Holmdel, NJ, February 12, 2014 - Vonage Holdings Corp. (NYSE: VG), a leading provider of communications services connecting consumers and businesses through cloud-connected devices worldwide, today announced results for the fourth quarter and full year ended December 31, 2013.
Summary of Fourth Quarter and Full Year 2013 Results
For 2013, the Company reported a positive swing of nearly 25,000 net line additions compared to the prior year, aided by the addition of subscribers to BasicTalk, an increased focus on in-person selling channels and the fourth quarter acquisition of Vocalocity, which has been renamed Vonage Business Solutions. Improvements in the customer experience contributed to a reduction in churn to 2.5% from 2.6% a year ago. Reflecting the Company's planned investment in growth initiatives, including the national launch of BasicTalk, adjusted EBITDA was $110 million, down from $135 million in the prior year.
For the quarter, Vonage reported solid core business results including positive net line additions for the third consecutive quarter due to improved churn, which declined 10 basis points sequentially to 2.5%. Vonage’s consumer business and Vocalocity both achieved positive net line additions in the quarter. EBITDA for the fourth quarter increased by $2 million sequentially to $25 million, and declined from $34 million in the prior year due to investments in growth priorities.
“In 2013, we made important progress against each of our growth priorities” said Marc Lefar, Vonage Chief Executive Officer. “We grew our base of BasicTalk customers. We laid the foundation for our business in Brazil, and are on track for a phased market entry early in the second quarter of 2014.
The following information was filed by Vonage Holdings Corp (VG) on Wednesday, February 12, 2014 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.