Lars Reichelt resigns as Cell C CEO

falcon786 said:
I actually saw this coming as I read a piece on him a while ago where it was obvious that he was only going to be here temporary since his family was living in sweden(if i remember correctly) all this time since both his daughters have learning disabilities and they attend a special school there.
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^this = true

Was greeting meeting and chatting with Lars and I wish him well in his future endeavours. He has really shaken up the mobile market in SA in his short time at the helm!

Thumbs up for 42 - The Answer to the Ultimate Question of Life, the Universe, and Everything!!! Good luck on your next voyage on the inter-galactic ICT highway...
 
I didn't know he was German. Now that brings another perspective to this matter. He got pushed because he almost brought first world broadband prices to SA, and the bastards didn't like it.

Now back to reality. I'm running out of vaseline.
 
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CEO's do not resign with immediate effect for 'personal' reasons. This is the age-old accepted spin for when a CEO and his/her Board part ways due to not meeting targets, or the board not wanting to support the CEO anymore. Typically because he/she is burning cash with no clear way to get out of it.

The Cell C financials leaked 2 weeks ago clearly explained what happened here. The CEO made some projections/promises to the board and shareholders and got a few billion to execute his plan.

After a year, he can show little growth in revenue but massive growth in expenses. EBITDA took a nosedive. This is what happens when you run specials for too long.

Firing the CEO is unfortunately the easy bit, it just gives you a scapegoat. The new guy must now somehow turn the 'turnaround' around, stop the bleeding.

There is only one way to do this. Increase pricing.
 
@FinancialGuy - did the financials really leak? And what was the EBITDA the year before?
 
Shocking News. Was reading the article on my tab this afternoon (on Cell C) and as I read the news, my connection just dropped to gprs. A sign of things to come?

Pynet said:
This is a great loss for Cell C. Can you guys remember what was Cell C 2.5 years back??
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Yes, they were 2.5G 2.5 years ago :D
 
FinancialGuy said:
CEO's do not resign with immediate effect for 'personal' reasons. This is the age-old accepted spin for when a CEO and his/her Board part ways due to not meeting targets, or the board not wanting to support the CEO anymore. Typically because he/she is burning cash with no clear way to get out of it.

The Cell C financials leaked 2 weeks ago clearly explained what happened here. The CEO made some projections/promises to the board and shareholders and got a few billion to execute his plan.

After a year, he can show little growth in revenue but massive growth in expenses. EBITDA took a nosedive. This is what happens when you run specials for too long.

Firing the CEO is unfortunately the easy bit, it just gives you a scapegoat. The new guy must now somehow turn the 'turnaround' around, stop the bleeding.

There is only one way to do this. Increase pricing.
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Increasing price will not help, you will just chase away your customers(cash flow). The only option is to cut cost.
 
Thanks Lars for Whoooosh! Best of luck to you and your family.

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P.S. When Jannie was CEO of iBurst, he interacted with myBB members quite often.

He was responsible for bringing down prices at iBurst.
 
Someone is definitely sore at Cell C.

No doubt this is why Lars is moving on, maybe he is concerned for his safety.

The police have raided ZTE's offices now for the second time, under the guise of them employing illegal workers, while they are not concerned about the hundreds of illegals crossing the borders every day from neighbouring countries.

For the uninformed, ZTE is the subcontractor appointed by Cell C to supply the equipment and technical services for the network.

http://www.techcentral.co.za/chinas-zte-lands-r29bn-cell-c-roll-out-deal/12443/
 
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Roadrunner said:
Someone is definitely sore at Cell C.

No doubt this is why Lars is moving on, maybe he is concerned for his safety.

The police have raided ZTE's offices now for the second time, under the guise of them employing illegal workers, while they are not concerned about the hundreds of illegals crossing the borders every day from neighbouring countries.

For the uninformed, ZTE is the subcontractor appointed by Cell C to supply the equipment and technical services for the network.

http://www.techcentral.co.za/chinas-zte-lands-r29bn-cell-c-roll-out-deal/12443/
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Coincidence?

The plot thickens, it seems.
 
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