Fixed line telco, Neotel on Monday (26 May) announced that it lifted revenue by 23% to R3.9 billion for the year ended March 2014, on the back of solid customer growth.<\/p>\n
This represents the first time that the company has reported actual figures on its financial results, since it launched in 2006.<\/p>\n
The group said that it turned profitable before tax for the first time since its inception, ending 2014 with a figure of R87 million.<\/p>\n
Neotel pointed to earnings before interest, taxes, depreciation, and amortisation of just over R1 billion, affording the company a capex spend of R500 million in the coming financial year.<\/span><\/p>\n Neotel said its debt was currently between R4.5 billion and R5 billion.<\/p>\n Neotel said total business subscribers grew by 28%, while small enterprise and retail customers grew 33%.<\/p>\n Total customers grew to 200,000, from 175,000 in the half year period, while business clients stood at just under 3,000.<\/p>\n Last week, Vodacom said it had reached an agreement to acquire 100% of the issued share capital in, and shareholder loans against Neotel for a total cash consideration of R7 billion.<\/p>\n Vodacom CEO Shameel Joosub said that Neotel, as a combined fixed enterprise business, will create a service provider with annual revenues of over R5 billion.<\/p>\n Sunil Joshi<\/a>, MD and CEO of Neotel, said that although growth and results were good, it needed the Vodacom deal to go through in order to proceed for scale and investment.<\/p>\n Vodacom acquires Neotel for R7 billion<\/strong><\/a><\/p>\n Neotel outlines fibre-to-the-home strategy<\/strong><\/a><\/p>\nMore on Neotel<\/h3>\n