Neotel has reported a 21 per cent rise in year-on-year revenue for the six month period ending September 30, amid ongoing negotiations with Vodacom over the network operator buying a 100 per cent stake in the company.
The results also showed the telecommunications company had turned a profit before tax for the first time in its seven year history.
Neotel’s earnings before interest, tax, depreciation and amortisation (EBITDA) also rose 105 per cent year-on-year.
Sunil Joshi, managing director and chief executive officer (CEO) of Neotel, would not comment on the ongoing talks with Vodacom, but did consider a “combined entity” would be able to offer a more “expanded product range” and allow the company to “extend its footprint in South Africa”.
Concerning the results, Joshi said: “The plan was to turn ebitda positive in FY12 – team Neotel did this. Then we set a target of being ebit positive in FY13 – Neotel did this too. Now we have achieved our target of being PBT positive – ahead of plan.”
Neotel now has 175,000 individual customers and around 3,000 business customers.