While Cell C`s subscriber base grew 7%, from 2.5 million to 2.7 million, the prepaid base remained constant, at 1.9 million compared to 2005, the mobile operator said at a media briefing in Sandton yesterday.
The lack of growth in the prepaid market was due to a high churn rate, Cell C executives said.
The postpaid subscriber base grew 6%, from 556 000 to 753 000, CFO Muhieddine Ghalayini stated, adding that total revenue grew 22%, to R3 billion.
Earnings before interest, taxes, depreciation and amortisation are up 23% from 2005, Ghalayini said. The blended average revenue per user of R152, including community service telephones, is up from R142 in 2005, he said.
CEO not pleased
Cell C CEO Jeffrey Hedberg said he is not pleased with Cell C`s performance over the first half of 2006. As the third licensed and smallest mobile operator, Cell C needs to improve its focus, speed and efficiency in order to grow in a market that is already dominated by two powerful players with deep pockets, he said.
Hedberg said Cell C lost its way several quarters ago by trying to be everything to everyone, everywhere. There was also a lack of consistency in strategy, with the result that Cell C resources were not used to effect maximum revenue growth, he said.
Simplicity, focus
Cell C`s new five-point strategy focuses on leadership and organisation, revenue growth, operational efficiency, change management and enhancing its good corporate citizen initiatives, Hedberg said.
As a result, two new senior appointments have been made. There will also be additional changes to strengthen the board, he said.
Hedberg pointed out that an initiative to trim the fat from the company`s operations has been put in place and 14 key areas where savings can be made have been identified. These resources will be better used to grow revenue, he said.
While certain staff will be reassigned in line with the new organisational focus, this is not a downsizing exercise, he said.
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