Cell C running at a R3.8-billion loss: report

freddster

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Uh oh, I thought something was up with the buying people's contracts out, and cheapest this, cheapest that. You have a bottom line, like everyone else and can't go below that, can't give too much away to gain customers.
 

MickeyD

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Say what ????

http://mybroadband.co.za/news/cellular/139738-cell-c-is-profitable-ceo.html

The chief executive officer of South Africa’s third largest mobile network Cell C said on Wednesday that the company is profitable.

Little is known about Cell C’s financial status owing to the company being privately held and not listed on the Johannesburg Stock Exchange (JSE).

Cell C launched in the local market in 2001 but as far down the line as 2014, reports emerged that the company was unprofitable.

A cover story in the Financial Mail in August 2014 said Cell C had yet to break even, let alone hit profitability.

However, on Wednesday Cell C CEO José Dos Santos said that Cell C is profitable in 2015. He made the comments at a media briefing at the company’s Johannesburg head office.

“We’re no longer the company that people perceived us to be three years ago,” said Dos Santos.

“We’re in a very healthy situation.

“It is very profitable,” he added.


Fin24 asked Dos Santos to elaborate on exactly when the company became profitable and the extent of its profits, but he was unwilling to disclose this information.
 

MickeyD

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Is it not against the law to make such a statement when not true, or is that only if you are listed on the JSE?
Cell C have refuted the latest claim so it will be interesting to see what happens if this ends up in court.
 

Ockie

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Cell C have refuted the latest claim so it will be interesting to see what happens if this ends up in court.
mmmmm indeed. Glad I was not tempted then to give them a second chance and just went back to Vodacom. Something does not smell right .... but guess will have to wait and see as the truth unfolds.
 

Dlamaqhinga

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I suspect Telkom uncovered a lot of things during their due diligence and this made them to walk away.
 

FlashSA

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Not surprised at all. Pretty obvious they have been burning through cash for years.
 

Dr Who

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One question: If you are on contract why would you worry if they go belly up? You will either be sold off to a new network or be let off the hook as if they cant operate they cant bill you. Other than a degrading of the service levels anything else would be fine?
 

cerebus

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I will not be at all surprised if they go bankrupt. It will be a great shame as the average contract prices will go way up. Been a happy CellC customer now for 8 years. Best value around by miles.
 

sajunky

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mmmmm indeed. Glad I was not tempted then to give them a second chance and just went back to Vodacom.
In other posts in period of 6 months you was claiming that you left Cell C for Telkom. You didn't like Cell C and you don't like Telkom either, but you couldn't afford Vodacom, shame...

Good to hear it is sorted out and you are finally back with Vodacom. You are in business relationship with Vodacom, so why you left Vodacom at first place? ;)
 

Ockie

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In other posts in period of 6 months you was claiming that you left Cell C for Telkom. You didn't like Cell C and you don't like Telkom either, but you couldn't afford Vodacom, shame...

Good to hear it is sorted out and you are finally back with Vodacom. You are in business relationship with Vodacom, so why you left Vodacom at first place? ;)
I have explained it many times. Go waste someone else's time. Engaging with you is a total waste of time and I frankly cant be bothered with you anymore. Cheerz.
 

R13...

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I wonder why they built that fancy new HQ on the M1 if they're not making money? And what is that warehouse thing next to their HQ?
 

Ockie

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I wonder why they built that fancy new HQ on the M1 if they're not making money? And what is that warehouse thing next to their HQ?
For stock I imagine. Vodacom also has its own warehouse @ Vodacom World where all stock is dispatched to all the stores.
 

The_Librarian

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One contract up for cancellation... Wanted to go for the R99 -20Gb deal, but things like this make me jittery...
 

ginggs

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One contract up for cancellation... Wanted to go for the R99 -20Gb deal, but things like this make me jittery...
How so?

As Dr Who asked:
One question: If you are on contract why would you worry if they go belly up? You will either be sold off to a new network or be let off the hook as if they cant operate they cant bill you. Other than a degrading of the service levels anything else would be fine?
 

FlashSA

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I wonder why they built that fancy new HQ on the M1 if they're not making money? And what is that warehouse thing next to their HQ?
Do they own it or are they just a tenant? I can't recall the specifics of the original article, but renting would have tax write off advantages...
 
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