South African fixed-line operator Neotel, recently acquired by Vodacom, has reported 23 per cent growth in revenue for 2013, totalling over ZAR3.9 billion (US$371 million) for the year ending March 31.
The company saw a 28 per cent and 33 per cent increase in business and retail customers respectively.
“The Neotel business continues to show strong growth. While there is considerable growth still to be realised, these results evidence the hard work from Team Neotel over the last 12 months,” said Sunil Joshi, managing director (MD) and chief executive officer (CEO) of Neotel.
The company also reported its profits before tax to be ZAR87 million (US$8 million).
“Neotel grew revenue across all its business NeoVoice and NeoInternet and NeoBroadband,” the company said in a statement.
HumanIPO reported earlier this month Vodacom had agreed to the 100 per cent acquisition of Neotel for ZAR7 billion (US$676.6 million), saying the deal would accelerate the rollout of broadband services in the country.
The deal will see Neotel becoming a subsidiary of Vodacom South Africa with the fixed line business generating revenues in excess of over ZAR5 billion (US$483.3 million) per year.
“The combined entity will also increase competition in the industry and more effectively compete against the incumbent amongst others,” said Joshi.
“The regulatory and competition approval processes [will] now be the focus of the coming months and while that is underway, it would be an even stronger focus on business as usual, while we execute the FY15 strategy,” he said.
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