Cell C faces an uphill battle: analyst

JimM

Expert Member
Joined
May 23, 2006
Messages
1,423
MTN and Vodacom will turn Cell C around if they start charging extra for VoIP...
 

ngwenyas

Senior Member
Joined
Feb 27, 2009
Messages
697
Cell C will not grow profit if they remain a charity case (free whatsapp, cheap this, buying out contracts). and their network is at a stand still, majority of their sim cards are used as secondary sims (just in case i dont find coverage on other networks).
 

Skerminkel

Expert Member
Joined
Dec 3, 2008
Messages
3,644
Cell C will not grow profit if they remain a charity case (free whatsapp, cheap this, buying out contracts). and their network is at a stand still, majority of their sim cards are used as secondary sims (just in case i dont find coverage on other networks).
The "charity case" is all marketing. They are generating a lot of news and consumers like it. They have also seen massive growth over the last few years. If their EBITDA is good, it means they are making money. I assume it already includes the cost of the debt. I cannot see how they can exclude it. If that is the case, the RoI might not be great yet, but a large investor might like the low risk of a large telecoms company over the longer term.
 

ToxicBunny

Honorary Master
Joined
Apr 8, 2006
Messages
81,766
He said Cell C is showing strong growth, and has a good financial position if its debt is taken out of the picture.
You state your debt is in the high teens (in billions), but you can only be in a good financial position if you take the debt out of the picture....

That is something as a major investor, I'd be VERY worried about.
 

znh

Well-Known Member
Joined
Feb 10, 2011
Messages
366
CellC faces uphill battle trying to signup all the people running from MTN and Vodacom over their hostile stance towards OTT services.
 

hawker

Honorary Master
Joined
Sep 22, 2006
Messages
11,297
They'll gain a lot of users once MTN and Vodacom start charging extra for using data for VOIP over their networks.
 

Swa

Honorary Master
Joined
May 4, 2012
Messages
21,256
Cell C will not grow profit if they remain a charity case (free whatsapp, cheap this, buying out contracts). and their network is at a stand still, majority of their sim cards are used as secondary sims (just in case i dont find coverage on other networks).
They are not a charity case. Buying out contracts came with strict conditions to make a profit while luring people away. Whatsapp costs R5. The majority of those secondary sims are in other devices taking chunks away from other operators with things like 3GB for 1 year or Giga100.
 
Top