Neotel on target for 16% SA market share

Neotel says it is on track to hit its market share target of between 14% and 16% by 2016.

Earlier in the week, the group reported a 10% rise in revenue for the half year ended September 2012, also highlighting its continued ebitda positive status since Q2 FY 2012.

The company’s interim results for the period ending September 2012 show a year-on-year increase of 10% and 276% in revenue and ebitda respectively.

Sunil Joshi, CEO at Neotel noted that the company lifted its business customers by 18% during the reporting period, increasing from 2,000 to 2,400 enterprise customers in the last six months.

Consumer customers improved 30% to 130,000, and free cash flow improved 49%, Neotel said.

When asked about the potential nationalisation of its rival fixed line operator, Telkom, Joshi told BusinessTech: “We still see a lot of opportunity out there. The total industry is about R140 billion, in mobile and fixed. In fixed it’s about R40 billion.”

Joshi said that the industry in SA was seeing a compounded annual growth rate of about 4%, “we are growing at 10%, so two and a half times in the first six months. We are growing faster than the industry, also we are gaining share,” he said.

The company chief said the plan for Neotel was to achieve a market share of 14-16% by 2016, adding that the consumer to business split remained at about 90/10.

“With access to over 12,000 kilometres of fibre across South Africa, Neotel provides reliable and flexible network, internet solutions to meet the domestic and global communications needs of our customers and help increase client productivity.

“Neotel will continue to focus on our five key priorities to ensure our growth trajectory continues. By improving the customer experience, growing revenue and market share, staying focused on our people, and bringing disruptive products to the South African market, we aim to provide innovative and world class communication solutions to our business and home customers,” Joshi concluded.

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Neotel on target for 16% SA market share