Cell C is clawing back subscribers - 'We're evolving the business now'
Is Cell C finally reaching its magical "turnaround" point?
"It's looking a lot better" says CEO Douglas Craigie Stevenson.
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.
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'
Source : @CellC/Twitter
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