Cell C banks on prepaid customers for growth

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The Covid-19 pandemic has had a negative effect on contract users’ ability to pay, the mobile operator says

Mobile operator Cell C says it is focusing on growing its prepaid customer base, given the negative effect of the Covid-19 pandemic on contract users’ ability to paySA’s fourth-largest mobile operator reported a loss in postpaid customers, while being able to push up the overall count, driven by a 15% rise in prepaid subscribers for the six months to end-June.

“A lot of the complaints that we get are about billing issues and credit vetting. It’s painful for the customer experience.” South Africans tend to have a mix of SIM cards from different operators, depending on use case and price. Craigie Stevenson said they aim to get more, if not all, of customer connectivity provided by Cell C.

The largest contribution to revenues came from Cell C’s prepaid customers at R3bn, down marginally from R3.1bn previously. The postpaid base fell 25% to R563m. Even though the costs will result in decreased earnings before interest, tax, depreciation and amortisation , “the net result will be lower depreciation, as well as an increase in cash flow due to the savings on capex and lease payments”, Mahomed said.

 

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