Neotel to spend R500m this year
Neotel, SA's second national operator, doubled its consumer customer base last year to 100 000 users after taking three-and-a-half years to reach the first 50 000 subscribers.
The operator, which will celebrate its fifth birthday this August, also achieved profitability at an earnings before interest, tax, depreciation and amortisation level for three-quarters of the 2012 year, which ended at the end of March.
CEO and MD Sunil Joshi, who has been in the position for just over a year, says it aims to spend about R500 million in capital this year, which is at the same level as 2011, and should light up another 2 000 kilometres of fibre.
Neotel has 6 500 kilometres of metro fibre and access to 12 000 kilometres of national fibre backbone. The operator currently has 5% of the market and should reach 10% by the 2015 financial year, says Joshi.
Joshi says the company aims to be profitable at an earnings before interest and tax level in the fourth quarter of this year. Neotel aims to reach pre-tax profit in 2015.
“Our business focused on four priorities at the start of the financial year; to improve customer experience, grow revenue and market share, become profitable and be passionate about our people."
Neotel grew revenue 25% in the 2012 financial year, although Joshi declined to provide actual figures.