Neotel denies financial problems
MyBroadband recently received information that Neotel is in ‘serious financial trouble’, caused partly by unsustainable pricing models. Neotel is however denying any financial problems, saying that the company is in good financial health.
“We are not experiencing financial difficulties. Please refer to our half-year media briefing held on September 22 [where Neotel said they are showing strong revenue growth],” the company said.
At the time Neotel announced that it has surpassed the R2.5-billion mark in terms of consolidated annualized revenue for the operating year. The operator added that it is confident that it is on track to surpass R3-billion in revenue this year. Neotel however did not elaborate on profitability, something which the latest information questions.
Neotel said that their current pricing models are sustainable, but declined to answer any questions as to whether their NeoConnect and NeoFlex product ranges are profitable. “With regard to any query related to Neotel’s pricing model there will be no further comment,” said Wandile Zote, Neotel’s Executive Head of Corporate Communication.
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