Cell C subscriber numbers increase
Cell C today reported an operating profit of R321 million for the year ending 31 December 2007, up from their operating loss in 2006 of R349 million.
CEO, Jeffrey Hedberg said that the company’s turnaround strategy continues to produce positive results.
“With earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) of over R1 billion, which marks an increase of more that 230% in one year, I am pleased that the team’s efforts are being honoured by our customers,” said Hedberg.
According to Hedberg it is Cell C’s focused strategy that have brought around the turnaround which he believes has resulted in increased levels of customer satisfaction.
“During the financial year which ended 31 December 2007, we connected over 3.5 million prepaid subscribers and a further 177 000 postpaid subscribers. This represents a significant improvement against our previous year’s connections of 1.8 million prepaid and 175 000 postpaid subscribers. As a result, we ended the year with a total active base of 4.8 million subscribers, an increase of 44% over the 3.3 million in the previous year,” said Hedberg.
In addition, Cell C’s cash flow from operations surged by 133%, from R361m in 2006 to R841m in 2007. “Our key business drivers are moving in the right direction and we are gaining momentum. We remain fully able to service our obligations and have the confidence of our major shareholder, Oger Telecom, and strong support from our local empowerment shareholder CellSaf.”
Hedberg was unable to comment on Oger Telecom’s interest in Telkom but said that from Cell C’s perspective there could be many potentially useful synergies should Oger buy the fixed line provider.
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