Cell C gains weight

Johannesburg, 22 Aug 2008

SA's third cellular operator, Cell C, has published strong half-year results, with revenue up by 17% in the six months ending June 2008.

CEO Jeffery Hedberg entered the 2007 financial year with a turnaround strategy for the company, which seems to be paying off. Results have been steadily stronger, both in the year-end report, released in April, and this financial half-year.

According to the company, the 17% revenue increase totals R590 million. Compared with the same period last year, operating profit has grown by 36% and earnings are at R517 million before EBITDA.

"Our management, staff and particularly our customers have responded exceptionally well to our concerted efforts to grow profitably, as part of our turnaround strategy," says Hedberg.

"There will continue to be a strong focus on improving and streamlining the company's operations and ensuring the organisation is leaner, quicker on its feet and more responsive to changing market requirements."

More subscribers

According to the results, Cell C's active subscribers increased by 58% since June 2007 to 5.4 million. Hedberg attributes the subscription surge to products like Woza Weekend and the Hola 7 starter pack.

"Our new core network has enabled us to effectively manage this increase in our customer base. Had we not migrated to the new core network technology, we would have had to build a network three times its current size," he adds.

The focus for the remainder of the 2008 financial year will be on refining processes and systems and ensuring an improved experience for customers. "We will continue to offer innovative and value for money products and services, which have been the driver of Cell C's recent market offers."

The company did not comment on the financial effect of the new core network, nor did it explain how it would streamline operations for the rest of the financial year.