The chief executive officer of South Africa\u2019s third largest mobile network Cell C said on Wednesday that the company is profitable.<\/p>\n
Little is known about Cell C\u2019s financial status owing to the company being privately held and not listed on the Johannesburg Stock Exchange (JSE).<\/p>\n
Cell C launched in the local market in 2001 but as far down the line as 2014, reports emerged that the company was unprofitable.<\/p>\n
A cover story in the Financial Mail in August 2014 said Cell C had yet to break even, let alone hit profitability.<\/p>\n
However, on Wednesday Cell C CEO Jos\u00e9 Dos Santos said that Cell C is profitable in 2015. He made the comments at a media briefing at the company\u2019s Johannesburg head office.<\/p>\n
\u201cWe’re no longer the company that people perceived us to be three years ago,\u201d said Dos Santos.<\/p>\n
“We’re in a very healthy situation.<\/p>\n
“It is very profitable,\u201d he added.<\/p>\n
Fin24 asked Dos Santos to elaborate on exactly when the company became profitable and the extent of its profits, but he was unwilling to disclose this information.<\/p>\n
Cell C, which has 22 million subscribers, reported in May that its overall revenues for the end of its financial year were up 3% year-on-year, while its prepaid segment makes up 60% of its overall service revenues.<\/p>\n
Cell C has also dealt with recent debt warnings.<\/p>\n
In June, rating agency Standard & Poor\u2019s issued a warning over Cell C\u2019s R2bn unsecured debt, which had upcoming maturities in July.<\/p>\n
But later in June, Cell C announced that it had raised R3.3bn to fund the company\u2019s capital expenditure and cash requirements.<\/p>\n
Cell C up for sale?<\/strong><\/p>\n Saudi Arabia\u2019s Oger Telecom currently has a majority stake in Cell C but reports have indicated that the Middle Eastern company could sell its interest in the South African telecoms company.<\/p>\n Furthermore, reports have cited Telkom executives as being interested in acquiring Cell C.<\/p>\n \u201cWe continue to be the service provider that keeps its competitors on its toes,\u201d said Dos Santos.<\/p>\n “If Telkom want us, they must write out a cheque,\u201d he said.<\/p>\n Fin24<\/a><\/p>\n Cell C\u2019s great comeback after Telkom\u2019s anti-contract buy-out ad<\/a><\/strong><\/p>\nMore on Cell C<\/h3>\n