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Cell C is clawing back subscribers - 'We're evolving the business now'

20 April 2021 8:14 PM
Tags:
MTN
The Money Show
Cell C
Bruce Whitfield
Mobile operator
company results
turnaround strategy
Douglas Craigie Stevenson
pre-paid customers

Has Cell C finally achieved a turnaround? Bruce Whitfield interviews CEO Douglas Craigie Stevenson about its full-year results.

Is Cell C finally reaching its magical "turnaround" point?

"It's looking a lot better" says CEO Douglas Craigie Stevenson.

RELATED: Cell C is rapidly bleeding subscribers - but it’s still alive, and it has a plan

The mobile operator has posted its financial results for the year ended 31 December 2020.

It reported a full-year loss of R5.5-billion, due to impairments and once-off costs.

However, the second six months showed an "encouraging" improvement after a recorded loss R7.6-billion in the first half of 2020.

123rf.com

RELATED: 'Cell C remains a mobile network operator' leasing MTN towers, says Cell C CFO

Total revenue for the 12-month period dropped by 8% to R13.8-billion (from R15.1-billion in 2019).

Cell C's prepaid base decreased by 15%. to 9.2 million customers. However, annualised ARPU (average revenue per user) increased 28%.

"Our strategy is to focus on profitable subscribers rather than size of subscriber base."

Bruce Whitfield interviews CEO Douglas Craigie Stevenson.

Yes, the first half was difficult. We were impairing a lot of the assets as we moved to the transition of the network.

Douglas Craigie Stevenson, CEO - Cell C

A pleasing second half with the pullback of R2.1 billion of profit to end us up on a R5.5 billion loss - mostly built up out of impairments and one-off charges...

Douglas Craigie Stevenson, CEO - Cell C

Subscriber growth returned back to 12.5 million from the half-year end at 11.7 million, so yes, I believe we're starting to get the business into the right place.

Douglas Craigie Stevenson, CEO - Cell C

It's a business in transition; we're evolving it now.

Douglas Craigie Stevenson, CEO - Cell C

Stevenson says Cell C has successfully stripped down unnecessary expenses and has got to the point where it can start to build again.

We've got the network strategy under control now... We're going with a very different strategy to our incumbent competitor... We've got a magnificent model that we believe is going to work for us going forward.

Douglas Craigie Stevenson, CEO - Cell C

Our base is moving towards pre-paid... I don't think we should differentiate... pre-paid or post-paid, it's about a good customer and making sure your customer gets what they need.

Douglas Craigie Stevenson, CEO - Cell C

Listen to the interview below:


This article first appeared on CapeTalk : Cell C is clawing back subscribers - 'We're evolving the business now'




20 April 2021 8:14 PM
Tags:
MTN
The Money Show
Cell C
Bruce Whitfield
Mobile operator
company results
turnaround strategy
Douglas Craigie Stevenson
pre-paid customers

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