Blue Label Telecoms co-CEO Brett Levy has stated that Cell C has a bright future, despite the mobile operator’s current financial situation.
Speaking at the company’s financial results presentation for the year ended 31 May 2019, Levy said that looking at only the core business of Blue Label Telecoms, the company has had a good year.
“The core business of Blue Label actually had a phenomenal year,” Levy said. “If you take the continuation of our core business, we grew by 26% over the last 12 months.”
“Of course, with this came the tough dealings around Cell C.”
Levy said that Cell C had experienced many positive changes over the last few months, adding that the company’s turnaround strategy was progressing well.
“The deals we are working on have progressed tremendously. There is a great future for Cell C,” Levy said.
Ahead of its results, Blue Label Telecoms announced that it would sell interests in Blue Label Mobile Group as well as the handset component of 3G Mobile.
Levy clarified that this disposal does not affect Blue Label’s core business and the units were sold at competitive prices.
“These units are sold at good values and this is not by any means a fire sale,” Levy said.
“The reason for this is clear – we are going to try and eradicate our debt in the next 12-24 months. This disposal doesn’t touch our normal core business.”
Cell C’s future
Speaking at the same presentation, Cell C CEO Douglas Craigie Stevenson also said that Cell C has a bright future.
Craigie Stevenson said that there was still an opportunity for Cell C in the market, especially considering the value of its assets.
He said that Cell C had valuable spectrum, a large customer base of 16 million active users, a wide distribution network, and a valuable brand – all of which it could leverage to improve its position.
“Cell C has definitely not stagnated, we are generating service revenue,” Craigie Stevenson said. “It is also a part of the adjustments that we are making.”
“As we redevelop our product portfolio, we will focus on making sure we understand what type of products to offer to our customers.”
“We are getting the business into the right place,” he said. “We are getting rid of costs, getting more efficient, and understanding what a performance culture is all about.”
Craigie Stevenson stated that the company needs to be more efficient than any of its competitors in order to recover and improve its position going forward.
“We need to be more efficient than anybody in this business. We cannot do about R1.5 billion a month in turnover and make a loss.”