It Woza successful half year for Cell C

22 Aug 2008

Cell C, South Africa’s third mobile operator by subscribers, reported half-year results for January to June 2008 showing active subscriber figures up 58% from June 2007 to 5.4 million, indicating Cell C is taking market share from its rivals MTN and Vodacom. The company says the increase has been largely driven by demand for products such as Woza Weekend which provides subscribers with free call minutes on weekends, and the Hola 7 starter pack, which costs less than ZAR10 (USD1.3). ‘Our new core network has enabled us to effectively manage this increase in our customer base. Had we not migrated to the new core network technology, we would have had to build a network three times its current size’, said CEO Jeffrey Hedberg.

The company reported earnings before interest, tax, depreciation and amortisation (EBITDA) was ZAR517 million (USD66.97 million) in the six months to 30 June 2008, up from ZAR346 million last year. The operator’s total revenue has increased 17% year-on-year to ZAR590 million, while operating profit increased 36% compared to the first half of 2007, although the company has yet to make a net profit, seven years after its launch.

South Africa, Cell C