Cell C ups revenue, subscribers

Johannesburg, 26 Apr 2007

Cell C saw revenue and subscriber growth for the past full year, with revenue up 19%, from 5.5 billion to 6.6 billion, as at 31 December 2006.

The third cellular operator says its subscriber base increased from 2.9 million to 3.3 million in the same period.

Gross profit increased by 18%, to R2.3 billion, while blended annual average revenue per user (ARPU), which includes revenue from community service telephones (CSTs), up 8.2%, to R159. Blended ARPU, excluding CSTs, increased by 7.2%, to R132.

Cell C CEO Jeffrey Hedberg says the company's growth in subscriber numbers, blended ARPU and airtime revenue contributed to its strong year-on-year growth in revenue and gross margin.

The overall revenue growth is primarily attributed to the larger subscriber base, increases in airtime spend and access revenue, as well as a boost in interconnection revenue, he says.

Product offerings

Sales for its lowest denomination recharge voucher, Half Tiger, are robust, says the company. Half Tiger saw a 107% increase in average monthly sales, year-on-year.

This week, Cell C launched a new starter pack, co-branded with musician and TV presenter Zola. Called Hola 7, the pack costs R9.95 and features a loyalty programme.

Cell C expects the offering to be popular with consumers who fall within the living standard measures of three to seven.

Simon Camerer, Cell C's executive head of marketing, previously noted the target users recognise the Zola brand and wish to be associated with it. He says a portion of the proceeds from sales of Hola 7 will be donated to a fund that will channel money back to low-income communities. The company has already pledged R1 million to the fund.