Cellphone operator Cell C scored a 19% rise in revenue for the year ended December 31 2006, the company announced on Thursday.
It said gross profit increased by R352-million — or 18% — to R2,3-billion, and subscriber numbers kept on rising.
”The business continues to perform well in a market characterised by fierce competition and an imprecise regulatory environment,” chief executive Jeffrey Hedberg said in a statement.
”Our continued growth in subscriber numbers … and airtime revenues has contributed to Cell C’s strong year-on-year growth in revenue and gross margin.”
The climb in overall revenue from R5,5-billion in the previous reporting period to R6,5-billion came from a larger subscriber base, increases in airtime and access revenue, and a boost in interconnect revenue.
Total connections increased from 2,9-million to 3,3-million subscribers.
”Overall, we are meeting our expectations both in revenue growth as well as in gross-profit growth, which reflects the strong customer preference for Cell C,” said Hedberg.
”The success of our affordable products, ranging from the Half Tiger top-up vouchers to ControlChat to Woza Weekend, clearly shows that this is what South Africans want.”
Earlier this month, job cuts of high-profile staff at Cell C prompted speculation that the company was ”on the brink of financial meltdown”.
Fin24 reported Cell C was said to have cut 5% of its 2 500-strong workforce already.
A chief corporate officer denied the report, saying the total staff complement at the end of March was more than 2 600.
”Twenty-four positions have been affected in our re-alignment process, of which over 90% had the opportunity to consider alternative roles within Cell C,” she said.
”This number represents less than 1% of our entire staff complement.” — Sapa