Neotel quarterly growth accelerates to 6.2%
Converged telecommunications network operator, Neotel continues to accelerate growth at a rate of 6.2% quarter on quarter, according to the latest results published by parent company, Tata Communications.
Tata announced its financial results for the quarter and nine-months ended December 31st 2012.
For the quarterly period, Tata said that its start-up business, pertaining broadly to Neotel, showed a growth in revenues of 9% at R772 million, from R701 million before.
The earnings before interest, tax, depreciation, and amortisation (ebitda) margins in the start-up business stood at 10.3% in Q3 FY2013, significantly higher from 2.9% in Q3 FY2012.
For the nine month period, revenue growth was at 11% to R2.192 billion, from R2 billion before, while ebitda margins at Neotel were reported at 11.2%, from -2.9% in the nine month period in 2012.
“Neotel continues to accelerate growth, Q-o-Q growth of 6.2% in local currency (ZAR) terms,” Tata said.
In 2012, Tata further increased its shareholding in Neotel to 67.3%.
In results for the quarter ended December 31st 2012, Neotel recorded a gross profit of R773 million, and ebitda amounting to R87 million. This was up from R727 million, and R74 million respectively in Q2.
Neotel turned ebitda positive from Q2 FY12 onward, having a recorded a loss of R91 million in Q2 FY11.
Neotel quarterly results
As of 31 December 2012, Neotel’s net debt stood at R5.477 billion, up from R5.170 billion as at the end of September 2012.
For the nine months ended 31 December 2012, Neotel’s capex stood at R316 million, while for the year ended 31 March 2012, capex stood at R420 million – half that for the same period in the prior year (R849 million).
Vinod Kumar, MD and Group CEO, Tata Communications, said: “We have firmly established all the foundational pieces required to support a solid, global communications and media business and are now focused on sweating our global assets as we continue to innovate and keep what we have developed at the forefront of the market.”
In November, Sunil Joshi, CEO at Neotel noted that the company lifted its business customers by 18% to 2,400 enterprise customers during the half year ended September 2012.
Consumer customers improved 30% to 130,000, and free cash flow improved 49%, Neotel said.
More on Neotel
Innovation and the rise of emerging markets
Neotel on target for 16% SA market share
Loading ...
