Neotel Releases Results – 1st profitable year MyZA

Neotel, South Africa’s first converged communications network operator, presented their H1 results for financial year 2013/2014 in Johannesburg yesterday. CEO, Sunil Joshi, presented a very positive outlook for the period. Joshi statedthat Neotel business grew 21 percent year-on-year (Network services make up 70 percent of the total revenue and managed services 30 percent) and generated a positive profit before tax (PBT) for the first time since its inception in 2006.

On individual businesses, Neotel grew revenues across all of its business units; namely Managed Services (125 percent), Network Services (10 percent), NeoVoice (24 percent), and NeoInternet and NeoBroadband (20 percent). This has resulted in sustained customer services growth of 27 percent in the Small Enterprise/Retail segment and 24 percent in the Business segment.

“The company’s positive performance has been driven by its on-net services and efficient utilisation of its infrastructure,” stated Naila Govan-Vassen, ICT Research Analyst at Frost Sullivan. “Neotel have continued to focus on client service and service delivery; with their mean time to repair improving from just over 12 hours to around 3 hours.”

Neotel launched four products during the period as part of their strategy to use their current infrastructure more efficiently; including video conferencing, broadband powered by LTE (1800mhz), increased speed broadband offering, and a usage based broadband offering.

“Improving customer service and providing innovative services, such as NeoSmart, Managed Services, Network Services, amongst others, in such a competitive environment has been key to the company increasing its customer base and becoming profitable,” concludes Govan-Vassen.