Vonage loss narrows but customer growth slows

NEW YORK, May 8 (Reuters) - Internet-based phone company Vonage Holdings Corp (VG.N) on Thursday reported a narrower first-quarter loss after cutting marketing spending, but customer growth slowed drastically as a result.

Vonage said its net loss shrank to $9 million, or 6 cents a share, from a loss of $72 million, or 47 cents a share, in the same quarter a year earlier.

The company said it added 30,000 net subscriber lines in the quarter, a sharp decline from 56,000 additions in the previous quarter and 166,000 in the year-ago quarter.

It said monthly customer churn, or cancellations, rose to 3.3 percent from 3.0 percent in the previous quarter.

Vonage Chairman Jeffrey Citron told Reuters in an interview that the company had suffered customer service problems, particularly in January. Such problems had been addressed and churn would likely improve in the second quarter, he said.

Citron said the company plans to increase spending on marketing in the latter half of the year, and expects customer growth to pick up as a result. (Reporting by Ritsuko Ando; editing by John Wallace)