ARPU

The term ARPU (Average Revenue Per Unit) is an economical indicator used in company’s economical and financial analyses and seeks to evaluate the (…)

ARPU Concept

The term ARPU (Average Revenue Per Unit) is an economical indicator used in company’s economical and financial analyses and seeks to evaluate the company’s capacity to generate income through each unit. Is a highly used indicator in sectors such as telecommunications and other sectors based in subscription, meaning the provided profit by each user of the services provided by the company and allowing to make comparisons between different operators. Its calculation é generally made by ratio between the total incomes subtracted from the total costs and the number of subscribed users.

Many times, this indicator is also used to measure the average income provided by new clients in comparison with old clients or to compare the medium income of new services in comparison to pre existent services.

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