Page 83 - Sector Alarm Annual Report 2020

Appendix Alternative performance measures
This section describes the non-GAAP financial alternative performance measures (APM) that are used in the annual report.
Adjusted EBITDA and Adjusted Portfolio EBITDA EBITDA is defined as Total income (Operating revenue and gain/ (loss) on sale of assets) adjusted for Operating expenses excluding other gain/(loss). EBITDA Small system is used as an additional measure of the group’s opera- tional profitability, excluding the impact from financial items, taxes, depreciation and amortization related to the Small system business segment.
Adjusted EBITDA is defined as EBITDA excluding items not regarded as part of the underlying operational performance for the period
Attrition rate
The attrition rate is the number of terminations (adjusted for moves when the customers signs a new contract) in the last 12 months, divided by the average number of customers for the last 12 months.
Average Revenue per user
Average monthly revenue per user (“ARPU”) is the portfolio services segment revenue, consisting of monthly average subscription fees, upselling and service visits divided by the monthly average number of subscribers during the relevant period.
Terminations
Terminations is the total number of terminated contracts during the period. Customers that terminate their contract within the second
6 months are not counted as a termination.
Cash acquisition cost per new customers
Cash acquisition cost per new customer (“CPA”) is the net investment required to acquire a customer, including costs related to the sales and marketing pro- cess, installation of the alarm and hardware costs adjusted for
installation fees charged to the customer.
Monthly adjusted EBITDA per subscriber
Monthly adjusted EBITDA per subscriber (“EPC”) is calculated by dividing the total Portfolio EBITDA by the monthly average number of customers.
New customers added
Total number of organic new customers adjusted for customers that have terminated their con- tract within the second 6 months after installation.
Net customer growth
The net customer growth is the change in the customer base from one period to the next.
Sector Alarm / Annual Report 2020