Cell C Annual Results

MickeyD

MickeyD

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With all the attention focussed on the DoC and ICASA it seems as if the Cell C results are slipping under the radar...

Maybe MyBB can shed some more light but some numbers I saw (briefly) for the period ended March 2011 shows that their margins are sliding - the wrong way!

Year on Year comparisons:
Overall revenue +5%
EBITDA -21%
EBITDA margin: 14.3% to 10.8%

And the big one... and correct me if I'm wrong... Cell C have under 90 000 whooosh data subscribers.

Whooosh?
 
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Link please or it's BS.

Eating gingerbread off my Galaxy S, baked by Darky.
 
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Well Vodacom and MTN still have a stranglehold on the market. For most people, once they settle on a service provider, they don't change. Why deal with all the hassle. So Cell C have an uphill battle ahead. But they have my support and endorsement.
 
At least I'm one of the 90000 that is still happy with Whoooosh!
 
We received exactly the same information - asked Cell C for comment but they did not want to comment.

Official financial results presentation next week.

MickeyD said:
With all the attention focussed on the DoC and ICASA it seems as if the Cell C results are slipping under the radar...

Maybe MyBB can shed some more light but some numbers I saw (briefly) for the period ended March 2011 shows that their margins are sliding - the wrong way!

Year on Year comparisons:
Overall revenue +5%
EBITDA -21%
EBITDA margin: 14.3% to 10.8%

And the big one... and correct me if I'm wrong... Cell C have under 90 000 whooosh data subscribers.

Whooosh?
Click to expand...
 
rpm said:
We received exactly the same information - asked Cell C for comment but they did not want to comment.

Official financial results presentation next week.
Click to expand...
Thanks, Oom RPM!

I'm sure you have some testing questions lined up for them...
 
MickeyD said:
With all the attention focussed on the DoC and ICASA it seems as if the Cell C results are slipping under the radar...

Maybe MyBB can shed some more light but some numbers I saw (briefly) for the period ended March 2011 shows that their margins are sliding - the wrong way!

Year on Year comparisons:
Overall revenue +5%
EBITDA -21%
EBITDA margin: 14.3% to 10.8%

And the big one... and correct me if I'm wrong... Cell C have under 90 000 whooosh data subscribers.

Whooosh?
Click to expand...

An insignificant increase in revenue with a significant decline in EBITDA typically indicates products are being discounted heavily or sold below cost.
 
FinancialGuy said:
An insignificant increase in revenue with a significant decline in EBITDA typically indicates products are being discounted heavily or sold below cost.
Click to expand...
Discounted data packages at way below cost? Nevvvver.

BTW: I thought the results were due next week?
 
Well I can say that most people in my sphere of influence are going to be moving their contracts to Cell C when they are up, so Cell C has definitely changed their image. I am a huge fan of Cell C currently but haven't made them very much money yet as I cannot port yet, the contractual nature of our market makes taking market share over night near impossible.

Cell networks are not your local burger franchise and cannot be turned around in a year. I would say that to get a clear picture of whether they are making headway you should look at how many contract customers they have VS last years numbers. And also give the LARS 3 years to turn things around. Look at the disaster that is 8ta, they have spent billions to generate a pitiful R22 million +- and yet they have not been written off.

I look forward to a robust discussion when Cell C makes more numbers publicly available. Right now there is way too little information and way to much conjecture.
 
Not much point in discussing it without access to the results tbh.

FinancialGuy said:
An insignificant increase in revenue with a significant decline in EBITDA typically indicates products are being discounted heavily or sold below cost.
Click to expand...
The dozen news stories about it indicate "products are being discounted heavily or sold below cost." The ratios on their own could just as easily indicate rising costs. Or a 100 other things.
 
Shayd said:
Well I can say that most people in my sphere of influence are going to be moving their contracts to Cell C when they are up, so Cell C has definitely changed their image. I am a huge fan of Cell C currently but haven't made them very much money yet as I cannot port yet, the contractual nature of our market makes taking market share over night near impossible.

Cell networks are not your local burger franchise and cannot be turned around in a year. I would say that to get a clear picture of whether they are making headway you should look at how many contract customers they have VS last years numbers. And also give the LARS 3 years to turn things around. Look at the disaster that is 8ta, they have spent billions to generate a pitiful R22 million +- and yet they have not been written off.

I look forward to a robust discussion when Cell C makes more numbers publicly available. Right now there is way too little information and way to much conjecture.
Click to expand...

Contract subscribers are down just under 20%.
 
HavocXphere said:
Not much point in discussing it without access to the results tbh.


The dozen news stories about it indicate "products are being discounted heavily or sold below cost." The ratios on their own could just as easily indicate rising costs. Or a 100 other things.
Click to expand...

It indicates nothing but rising costs. Specifically rising operational costs.

The business is going backwards. Only way to correct this is to increase sales of profitable products and/or margin on special offers and/or reduce costs.
 
FinancialGuy said:
It indicates nothing but rising costs. Specifically rising operational costs.
Click to expand...
3 hours ago you said it indicates decreased sales prices. Now you say it indicates nothing but increased costs. :confused:

For all we know its an unhedged forex loss. Or a 100 other things...
 
FinancialGuy said:
It indicates nothing but rising costs. Specifically rising operational costs.

The business is going backwards. Only way to correct this is to increase sales of profitable products and/or margin on special offers and/or reduce costs.
Click to expand...

Then explain this : http://mybroadband.co.za/news/busin...tml?utm_source=twitterfeed&utm_medium=twitter

I think they are doing something right, but only need to reach critical mass...

Otherwise they would have gone out of business a long time ago.
 
The_Librarian said:
Then explain this : http://mybroadband.co.za/news/busin...tml?utm_source=twitterfeed&utm_medium=twitter

I think they are doing something right, but only need to reach critical mass...

Otherwise they would have gone out of business a long time ago.
Click to expand...

If the information in your link is correct, it supports my assumptions.

If voice revenue is down but data revenue is substantially up, which is at a higher ARPU, you would expect profits to be up.

That is not the case it seems. Which indicate that either opex is running away or you are selling a lot of product at a negative GP. This correlates well with selling 86000 "specials".

There is no reason Cell C would have gone out of business within the last year, as you state. It all depends how deep your shareholders' pockets are. And their appetite.

The latest numbers don't paint a rosy picture. We'll need to wait another 6 months to see if the trend reversed.

8ta might well have dealt the deathblow to Cell C today. Time will tell.
 
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