Black is here to stay, despite serious financial problems

Cell C is facing serious financial problems and has begun talks to delay debt payments and hired consultants to probe its business practices.

As part of its turnaround plan, Cell C has implemented significant austerity measures and has cut costs which do not contribute to revenue-generating activities.

One of the divisions which have been affected by the cost-cutting measures is Black, the company’s video streaming platform.

MyBroadband has learned that Cell C stopped its investment in the Black platform, which included freezing the development of its web and mobile apps.

There is a lot of speculation that Cell C may close Black, but the company said this service is here to stay.

“Cell C is not closing black. However, we will reduce future financial commitment,” Cell C spokesperson Karin Fourie told MyBroadband.

Fourie added that content is an important part of Cell C’s strategy and they use it to offer a differentiated service to their customers and as a retention tool.

Big financial challenges at Cell C

Cell C interim CEO Douglas Craigie Stevenson recently published an open letter detailing how the company will implement a new business plan to improve its current position.

Stevenson said the company faces financial and other challenges, and will implement a new business plan which will simplify its business model.

This plan includes a recapitalisation to optimise the capital structure, extracting greater value from its roaming agreement and optimising its network revenue and usage.

“The goal for Cell C is to become significantly better focused on operational performance, sound business ethics and accountability throughout the business,” said Stevenson.

Now read: Big Cell C turnaround plan – Cost-cutting, investigations, and a hiring freeze

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Black is here to stay, despite serious financial problems