Cell C is reporting strong financial gains on the back of its market recapitalisation last year.
This was revealed today in Cell C’s financial snapshot of the year ended December 2017.
The network operators big win for 2017 was data revenue which increased 29 percent year on year. Data customers – of which there are now 12.6 million – also used 90 percent more data compared to 2016.
This increase in data consumption was also helped along by the addition of 21 percent more smartphones to the network.
“Data usage per customer continues to grow off the back of the continued decreased cost per MB of data on the Cell C Network, which dropped by more than 36% year-on-year,” said Cell C chief executive officer Jose Dos Santos.
“We are also seeing more customers moving from feature devices to smart devices, partly due to the increased affordability of smartphones, especially company branded devices,” added the CEO.
Meanwhile revenue from voice services has declined as customers seek out alternative communication platforms. This decline is described as the new normal by Dos Santos and he expects the decline to accelerate in the future.
Overall Cell C reported a net profit of R4.1 billion for the year with earnings before interest, taxes, depreciation and amortisation (EBITDA) amounting to R7.8 billion.
“While our turnaround strategy was put in place in 2012, the recapitalisation of Cell C last year has really allowed us to create a strong foundation for the business. Our plans now are to build out this strategy and really accelerate our growth and investment going forward,” Dos Santos said.