Cell C revenue reaches R14.6bn
SOUTH Africa’s third largest mobile operator yesterday said it had increased its total revenue by 11 percent to R14.6 billion following the successful restructuring of the company.
The company said it would also list on the JSE within three years after the completion of the recapitalisation programme driven by Blue Label Telecoms.
Chief executive José dos Santos urged the operator’s unsettled black economic empowerment partner CellSAf to stay the course and embrace the opportunities that restructuring of the company would bring.
CellSAf has threatened to derail Cell C’s restructuring, which will result in prepaid airtime and data distributor Blue Label Telecoms and Net1 Applied Technologies South Africa buying 45 percent and 15 percent stakes in Cell C, respectively.
Dos Santos said the restructuring was the best opportunity for CellSAf to stay in the company. “You have now a totally recapitalised company.”
He said it was unfortunate that Cell C’s existing shareholders had never received a dividend. “But we should actually be pleased that we have new equity partners that have come in to reduce the debt. There is no reason why (CellSAf) should not participate. There is no reason for them to walk away. They are still part of the mix. They have a great future,” he said.
In the year ended December 31, Cell C increased total subscriber growth by more than 20 percent to 15.3 million active customers. The group posted a profit of R540 million.
“The 2016 financial year was exceptionally challenging, with South Africa’s economic growth essentially flat. Despite this, the company delivered solid results,” said Dos Santos.
Cell C yesterday reported its first ever full-year profits for the year.
Dos Santos, however, warned that the company was not in a race, despite capital expenditure hitting R3.4 billion for the financial year ended December 31, saying it only accounted for 23 percent of the total revenue.
“We have undertaken significant capital expenditure