2sonsandadaughter

Internet phone company Vonage Holdings Corp. reported a wider net loss for the second quarter as it spent heavily to market its Web-based calling service.

Vonage, whose shares have lost more than half their value since going public in May, said its loss widened by 16.5 percent to $74.1 million, or $1.16 per share. The company's loss in the same quarter a year ago was $63.6 million.

The company said it does not expect to become profitable till first quarter 2008.

2sonsandadaughter

Vonage spent over $90 million on marketing during the second quarter, 46 percent more than it did a year earlier which took its marketing costs per gross subscriber line to $239 up from $236 a year ago.

2sonsandadaughter

Vonage added more than 1 million net subscriber lines during the year, including 256,000 during the second quarter. The company ended the quarter with more than 1.85 million total subscriber lines, up 119 percent from a year ago and 16 percent from the previous quarter.

2sonsandadaughter

In filings ahead of its initial public offering, Vonage said it expects to continue incurring losses "for the foreseeable future" as it focuses on growth over profitability.

2sonsandadaughter

Vonage's public offering was one of the year's worst. The company priced at $17 a share in May and closed at $14.85 at the end of its first day of trading.

Desiree

I have seen commercials and now I have decided to get vonage here shortly for there cheap long distance I like it.

rocker21

I would think that Vonage would eventually catch on and become quite popular but who knows, I guess time will tell.

Desiree

well vonage may not have many customers but look how many different places you can go for services people dont even know about them because i dont think they advertise enough.