Cell C CEO, Douglas Craigie Stevenson, has been taking steps to right-size the business, focusing on revenue-generating activities and cutting costs where necessary. This comes after earlier this year, Cell C fell into some dangerous territory when debt, poor business performance and liquidity problems threatened to cripple the network provider.
Since his initial appointment in March, Stevenson has tried to ensure that there is adequate clarity and transparency within the company. “Our decision to reconfigure our product and services is part of putting the business on the right track,” says Stevenson. “We need to move forward based on a roadmap that is robust, profitable and in the best interests of Cell C and its customers.”
On Thursday, 26 September 2019, Cell C released it’s latest quarterly results – ending August 2019 – and it looks as though the country’s third-largest mobile operator is finally on the right track with an 18 per cent increase in EBITDA.
Turnaround indicators:
- Year-on-year quarterly service revenue, otherwise known as customer spend (June-Aug 2018 vs June-Aug 2019) grew by 2 per cent;
- Year-on-year quarterly gross margin down 9 per cent;
- Year-on-year quarterly EBITDA was 18 per cent higher.
Stevenson says that he is confident that Cell C will stabilise and recover to the benefit of its shareholders, consumers, staff and the local telecommunications industry.
“Our turnaround strategy is focused on ensuring operational efficiencies, restructuring our balance sheet, implementing a revised network strategy and improving our overall liquidity. Cell C has a real opportunity to address its historical performance through a focus on operations that will restore shareholder value. We are convinced that our wide-ranging operational initiatives will position Cell C for long-term success.”
Edited by Jenna Cook
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