CFO Zaf Mahomed is seeing the positive impact of Cell C’s turnaround strategy
Cell C’s increased focus on more profitable subscribers saw its EBITDA up by 30 percent.
Cell C has reported an improvement in the quality of its earnings in its results for the year ended December 2020.
According to the results, EBITDA was almost 30 percent higher at R4.1 billion as a result of the positive impact of cost containment initiatives and the stabilisation of subscriber revenue and gross margin.
Total revenue for the period declined by eight percent to R13.8 billion, with the largest part of the revenue contribution from its prepaid base at R6.2 billion.
CFO Zaf Mahomed said that, although the company made a full year loss due to impairments and once-off costs, the latter six months of 2020 was encouraging. “Our results reflect a business in transition. We are starting to see the impact of our changes, which included a focus on more profitable subscribers and through the reduction in costs, a shift to revenue generating activities. The foundations are now in place.”
The average revenue per prepaid customer (ARPU) has increased by 28 percent on a year-on-year basis and indicates an upward trend over the last four six-month cycles.
Cell C CEO Douglas Craigie Stevenson said that the company’s turnaround strategy has improved its financial performance as a mobile network operator and Cell C is operationally more efficient. “Over the next three years we will fully transition to roam on partner networks – all with the aim of providing a quality network, innovative value offerings for our customers and ensuring a profitable and sustainable business.”