Mobile operator Cell C has posted a 16% increase in earnings before interest, taxes, depreciation and amortisation (Ebitda) to R2.4-billion, as its net loss after tax narrowed by 33% to R645-million for the first half of this year, from a net loss of R968-million in the comparative period last year.
In a presentation released by 49%-owner JSE-listed Blue Label Telecoms on Tuesday, Cell C showed a year-on-year rise of 5% in revenue to R7.8-billion and an 11% hike in service revenue to R6.9-billion for the six months to June 30.
Total subscribers for the six months under review increased by 4% to 16.3-million, while total active data subscribers contracted by 4% to 12.1-million.
Data revenue increased 20% to R2.96-billion, while data traffic increased 62% year-on-year.
Data revenue contributed 52% of mobile revenue, compared with 46% the previous year, despite the effective price of data per megabyte decreasing by more than 28% year-on-year.
The network capital expenditure during the half-year of R1-billion, 13% of revenue and a rise on the R494-million reported in the comparative half-year in 2017, was strategically focused on the provision of mobile voice, data services and content through a combination of a long-term evolution- (LTE-) Advanced network that overlays the company’s LTE, third-generation and second-generation networks.
“We have focused our efforts on innovation and improving our network coverage and quality, as well as customer experience and will continue to build on our strong foundation with revenue projected to perform promisingly,” said Cell C CEO Jose Dos Santos in a statement post the release of the financial results.
He added that the financial results for the first half of the year signalled how the operator was on track to deliver substantial growth through its strategic initiatives.
“Following the measures put in place as part of our turnaround strategy, we are seeing both a satisfactory financial performance to date and increased value offering for our customers.”