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Cell C reports strong quarter

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 01 Sept 2005

Mobile cellular phone operator Cell C`s total revenue for the quarter ending 30 June increased by R356.7 million to R1.277 billion - up 39% year-on-year.

Announcing its quarterly results today, Cell C said it had positive earnings before income tax depreciation and amortisation of R87.7 million for the quarter. The increases were attributed mainly to a larger subscriber base.

Cell C says it now has 2.5 million active subscribers - 2 million prepaid and 500 000 postpaid - and blended average revenue per user of R120 maintained year-on-year.

The mobile phone operator also notes that it now has 22 000 community service telephone lines implemented and carries 80% of its traffic on its own .

Cell C`s overall market share at the end of the quarter was 10.5%, with its share of the postpaid market increasing by 0.5% to 14% in the three months.

"We have much more to aim for, but the successful refinancing of our start-up debt, with flexible and cost-effective bond finance from the international markets, demonstrates the robust nature of our business and a shared belief that Cell C can capitalise on the opportunities ahead," says Muhieddine Ghalayini, CFO of Cell C.

"The last quarter has seen the business come of age," says Talaat Laham, Cell C chairman and CEO. "Our refinancing now provides us with an excellent platform to seize the opportunities ahead."

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