Web Africa reveals revenue and growth plans
Web Africa is one of the country’s largest ISPs, with thousands of hosting and Internet access clients. After a decade the company continues to show growth, with an 11% revenue increase over the last twelve months.
Web Africa’s new CEO, Tim Wyatt-Gunning, told MyBroadband BusinessTech that they are geared-up to continue their growth in both the consumer and business market.
Web Africa COO, Rupert Bryant, said that they are looking to exceed R130 million in revenue for the next financial year. “At this stage we’re proactively focusing on growth, so any profits are re-invested back there,” said Bryant.
Despite the continued growth and better economies of scale, margins remain fairly thin on the ADSL side.
“75% of ADSL revenue goes towards the wholesale network costs (and most of this is to Telkom). We’ve had to learn to be fairly lean and efficient. As a comparison, many international ISP’s typically spend only about 60% on network costs – a massive difference,” said Bryant.
Bryant added that their hosting margins, for example, are significantly higher than what they can get from ADSL.
To improve the situation for ISPs, Bryant suggests that Telkom’s monopoly needs to be broken. “The regulators and government need to get it together and either put some legislation down, or break up Telkom into separate wholesale and retail companies,” said Bryant.
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