Cell C's results show growing popularity

Jeffrey Hedberg, outgoing chief executive officer of Cell C said the results for the year ending 31 December 2008 underline that the company's strategy continued to pay handsome rewards as the operator declared increases in customers and revenue.

Cell C generated revenue for the year of R8.6 billion, an increase of 14% from the 2007 year, and achieved Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) of R812 million.

Hedberg said that the results are positive, given the tough economic environment, and the pressure on consumers' personal budgets and disposable income.

"Our strategy and tactical plans produced the results in 2008 and I believe the team has met the expectations of both our customers and shareholders."

He added that tighter management control had kept costs at adequate levels while profit margins remained satisfactory.

Market share has increased as the client acquisition and retention strategies bore fruit in the year under review. As at 31 December 2008, the active subscriber base totalled 6.4 million subscribers, an increase of 34% from 2007.

Newly appointed CEO, Lars Reichelt said while the company has performed well in most areas of the business in 2008, there is still significant room for improvement.

"The potential for growth remains strong and we will focus our efforts in 2009 to ensure Cell C offers simple, innovative, value-for-money products and improved customer service.

"Cell C will aggressively expand its network coverage and manage anticipated growth in usage. We will also further improve the operational and financial performance of the company," Reichelt said.

Simon Duffy, chairman of Cell C's board added that the shareholders are fully committed to the company and will continue to invest in the success of Cell C.

"We are pleased with the results and confident that the company will continue to deliver against the expectations of the board and shareholders."

Published courtesy of