Cell C upbeat
Cell C had achieved earnings before interest, tax, depreciation and amortisation of R517 million for the six months to June, up from R346 million last year, South Africa’s third cellular network provider said yesterday.
Revenue rose 17 percent to R590 million. But the company has yet to make a net profit, seven years after its launch.
Chief executive Jeffrey Hedberg said staff commitment to the customers was paying dividends, despite the current economic climate.
Cell C increased its customers by 58 percent to 5.4 million, mainly because of products such as Woza Weekend, which provides subscribers with free call minutes on weekends, and the Hola 7 starter pack, which costs less than R10 and comes with a free CD and a poster of kwaito artist Zola.
"Our new core network has enabled us to effectively manage this increase in our customer base," Hedberg said.
"Had we not migrated to the new core network technology, we would have had to build a network three times its current size," he added.
Cell C’s improved financial status led Moody’s to change its rating from negative to stable in April, after the firm reported full-year operating profit of R321 million from a loss of R349 million last year.
In May Standard & Poor’s placed Cell C’s long-term credit and debt ratings on positive after Cell C’s parent company Saudi Oger said it would purchase all or part of Cell C’s public debt.
Hedberg said Cell C, like other businesses, was affected by the economic slowdown, but he was optimistic that the company would continue to grow profitably.
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