Cell C releases strong year-end results
Cell C today announced a strong set of results for the financial year ended December 2014 increasing revenue by 16% year-on-year.
“Both operationally and financially, we have seen some excellent growth in key areas, despite the lack of regulatory support. We have worked hard to grow both our customer base and drive efficiencies to bring us to the highlights of the 2014 results,” says Cell C CEO Jose Dos Santos.
Cell C closed the year with 19.6 million customers, which translated to a year-on-year increase of 44%. Reflected in this figure is the 45% increase in prepaid subscribers and a 29% increase in the number of customers purchasing data, which was a real success story for the company.
“While we saw quite a large increase in the number of data users, the actual volumes of data usage on the network increased by 106% and contributed to a data revenue growth of 76%. We are exceptionally pleased with the results in this space and we will continue to drive value-based products to our customers,” says Dos Santos.
Supported by shareholder investment, the company continued network expansion and had a total of 4524 sites on air by end December 2014. R2.2 billion has been budgeted for the continued investment in the 2015 financial year. This capital budget will also support the company’s LTE strategy, which will be announced in due course.
The Network Operations team has completed an intensive network project in the Gauteng Region. This project included the harmonisation of the Company’s network equipment on 1215 base-stations in the region, as well as the replacement of out-dated technology on some of these sites. Additionally, network traffic consolidation and stability enhancements have proven to show exceptional customer feedback on quality.
The Gauteng Improvement project was completed on time and within budget. Cell C continues with similar projects in other metro regions in 2015 to sustain the stability, quality and modernisation drive across the country.
“We are very pleased with the progress on our network, and in the middle of February this year, we turned off roaming in the Tembisa area where we have built excellent coverage. I am pleased to report that the project went off without a hitch and two other phases of this project will happen throughout the year,” says Dos Santos.
The company has already provided notice to our roaming partner to turn off roaming in the Soshanguve, Pretoria North and Mamelodi regions in April and the Pretoria West, Midrand and Diepsloot regions in May.
While network was a core focus for the business during 2014, Cell C also realigned its strategy, re-engineered many of its systems and processes and worked to ensure more simplicity and efficiency in the way the business operates. “We will also be putting our attention on building a highly advanced customer service layer to bolster our service offerings,” says Dos Santos.
Cell C concluded its efficiency drive at the end of the year. “We are a far leaner, more agile and efficient business than we were this time last year,” says Dos Santos.
The company has also reevaluated its potential market propositions and has taken a strategic shift. “We are taking a more focused approach. We have very specific segments that we are focusing on this year and we have made significant inroads in these segments, including the enterprise market,” says Dos Santos.
“Our shareholders are pleased with the performance of the business over the 2014 financial year and we are extremely thankful for their continued support and commitment to the company.