Gross profit increased by R352m, or 18% to R2,3bn, while blended annual average revenue per user or ARPU (including Community Service Telephones or CSTs) increased by 8,2% to R159. Blended ARPU excluding CSTs increased by 7,2% to R132.

The business continues to perform well in a market characterised by fierce competition and an imprecise regulatory environment. Our continued growth in subscriber numbers, blended ARPU and airtime revenues has contributed to Cell Cs strong year-on-year growth in revenue and gross margin, says Jeffrey Hedberg, CEO of Cell C.

The increase in overall revenue from R5,5bn in the previous reporting period to R6,5bn at the year end was primarily attributed to the larger subscriber base, increases in airtime and access revenue as well as a boost in interconnect revenue.

Cell Cs R5 airtime recharge voucher, Half Tiger, continues to gain market acceptance and market share. Average monthly sales year-on-year increased by 107%. Woza Weekend has seen an increase in the number of on net weekend calls, as customers take advantage of the exceptional offer.

Total connections increased from 2,9m to 3,3m subscribers in the current reporting period.

Overall, we are meeting our expectations both in revenue growth as well as in gross profit growth, which reflects the strong customer preference for Cell C, continues Hedberg.

However, the proportionate consolidation of the launch of Virgin Mobile SA impacted negatively on EBITDA during the reporting period. EBITDA decreased by 15,3% from R541,5m to R458,8m in the current period.

Cell Cs network was expanded to a total of 2151 base stations. The operator now carries 84% of its traffic on its own network. In addition Cell C says that in 2006 it surpassed its final licence requirements of 60% population coverage and 8% geographic coverage, two years before the required date.