Cell C has released its financial results for the year ended May 2019, which revealed service revenue of R14.2-billion and an after-tax net loss of R8.03-billion.
Cell C CFO Zaf Mahomed said the financial performance for the past year has been below expectations.
“The 2019 financial year has been characterised by slow growth, a volatile rand, service issues relating to load shedding and a continuing slowdown in the economy,” Mahomed said.
“Consumer purchasing power has weakened, which together with reduced disposable income contributed to a lower than expected financial performance of the company.”
While the company’s total revenue increased 1% to R15.4 billion, earnings before interest, tax, depreciation and amortization (EBITDA) was 19% lower at R3.39-billion.
Turnaround plan working
While Cell C is facing tremendous headwinds, Cell C CEO Douglas Craigie Stevenson is upbeat about the company’s prospects.
He said that by executing on its turnaround plan, Cell C will dramatically improve its financial profile and deliver a streamlined business.
“We believe in Cell C’s long-term prosperity, and I’m confident we will get there.”
He said Cell C has a customer base of almost 16 million customers, a distribution network of over 240 stores countrywide, and a strong brand.
The last three months have already showed early signs of recovery. Cell C’s earnings are up, its margins are stabilising, and there is a strong focus on cutting additional costs.
Cell C’s performance in one slide
The slide below provides an overview of Cell C’s financial performance.