Neotel turns EBITDA positive

Neotel reported that it has achieved positive earnings before interest, tax, depreciation and amortization (EBITDA) for the second quarter ended September 2011 of financial year ending March 2012.

Sunil Joshi, MD & CEO of Neotel commented: “We had four priorities at the start of this financial year; create an engaged and passionate team, improve customer experience, grow revenue and market share, and become profitable. I am pleased to say that thanks to the tremendous efforts from the Neotel team, we have made good progress on all these priorities in the past six months.”

Neotel said that the focus on their “four pillars has yielded great results over the past six months”.

Key highlights during this period include:

• business customer growth of 23%;
• consumer customer growth of 40%;
• increased global connectivity, with access to all five undersea cables connecting South Africa, creating a peerless downtime capability.

Neotel grew its revenues by approximately 25% in 1HFY12, compared to 1HFY11, on the back of growing customer base and market share.

Neotel said that they have made significant progress in improving its ability to deliver services faster to its customers. In the past six months it improved its service delivery time by up to 35%.

“Neotel will continue to pursue strong sales and market share growth, to focus on customer service and providing customers with the productivity benefit of its unique network,” said Neotel.

“Developing enduring partnerships built on trust is going to be at the heart of our customer strategy,” Joshi concluded.