Average Margin Per User - AMPU

Average Margin Per User - AMPU
A widely used metric for gauging the success of businesses in the telecommunications industry. Average margin per user (AMPU) measures the margin made by the firm from each customer, typically measured as the revenue minus the costs and divided by the number of users.

Although most telecommunications-industry analysts and firms use average revenue per user (ARPU) as a profitability indicator, AMPU is arguably a more reliable metric of a firm's profitability. By breaking down customer sales by margin rather than by revenue, companies that have lower sales volumes but create larger margins can be considered more efficient and arguably more profitable than their high-volume competitors.

Investment dictionary. . 2012.

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  • Average margin per user — (AMPU) is one of several criteria for measuring the success of telephone companies. It is an alternative to ARPU, which focuses on revenue per unit. The central premise is that by attention to the margin produced per sold unit, not the amount of… …   Wikipedia

  • Average revenue per user — ARPU is an acronym for average revenue per user or average revenue per unit. This term is used by companies that offer subscription services to clients for example, telephone carriers, Internet Service Providers, and Hosters etc. It is a measure… …   Wikipedia

  • AMPU — may refer to:* Average margin per user * Average minutes per user …   Wikipedia

  • ARPU — El ARPU (acrónimo de Average Revenue Per User, ingresos medios por usuario) es la media o promedio de ingresos por usuario que obtiene, en un período, una compañía de servicios con amplia base de usuarios. Se calcula dividiendo el total de… …   Wikipedia Español

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