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Cell C to invest R2.2bn as it boosts top line

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 24 Feb 2015
Cell C is a leaner, more agile business now, says CEO Jose Dos Santos.
Cell C is a leaner, more agile business now, says CEO Jose Dos Santos.

Cell C, SA's third-largest network operator, has grown its top line and subscriber base in the year to December.

In a statement released this afternoon, the company noted revenue gained 16%, but did not disclose how much it turned over, and said subscribers overall gained 44%. Last May, the company said its subscriber base increased 35% year-on-year at the end of 2013, translating into a revenue increase of 14% year-on-year.

CEO Jose dos Santos says the company has seen "some excellent growth in key areas" both operationally and financially. "We have worked hard to grow both our customer base and drive efficiencies to bring us to the highlights of the 2014 results."

Cell C ended the year with 19.6 million customers, which translated to a year-on-year increase of 44%. Reflected in this figure is the 45% increase in prepaid subscribers and a 29% increase in the number of customers purchasing data, which it says "was a real success story for the company".

By the end of 2013, Cell C boasted a customer base of 13.6 million, a net growth of 3.5 million for the year.

"While we saw quite a large increase in the number of data users, the actual volumes of data usage on the network increased by 106% and contributed to a data revenue growth of 76%. We are exceptionally pleased with the results in this space and we will continue to drive value-based products to our customers," says Dos Santos.

Supported by shareholder investment, the operator continued network expansion and had a total of 4 524 sites on air by end December 2014. Some R2.2 billion has been budgeted for the continued investment in the 2015 financial year, which will support its soon-to-be announced long-term evolution strategy.

Oger Telecom, Cell C's controlling shareholder, has invested $450 million (about R5.2 billion) in the business over the past 24 months.

Network improvements

Cell C notes its network operations team has completed a network project in Gauteng, which saw the harmonisation of the company's network equipment on 1 215 base-stations in the region, as well as the replacement of out-dated technology on some of these sites. Cell C says "network traffic consolidation and stability enhancements have proven to show exceptional customer feedback on quality".

The operator adds the Gauteng improvement project was completed on time and within budget. "Cell C continues with similar projects in other metro regions in 2015 to sustain the stability, quality and modernisation drive across the country."

During last year, Cell C also realigned its strategy, re-engineered many of its systems and processes, and worked to ensure more simplicity and efficiency in the way the business operates. "We will also be putting our attention on building a highly advanced customer service layer to bolster our service offerings," says Dos Santos.

In addition, Cell C concluded its efficiency drive at the end of the year. "We are a far leaner, more agile and efficient business than we were this time last year," says Dos Santos.

The company has also re-evaluated its potential market propositions and has taken a strategic shift. "We are taking a more focused approach. We have very specific segments we are focusing on this year and we have made significant inroads in these segments, including the enterprise market," says Dos Santos.

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