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Telkom appoints Cell C exec

Jul 07 2009 20:21

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Johannesburg - South Africa's Telkom SA Ltd has appointed Jeffrey Hedberg, the former CEO of cellular firm Cell C, to run and revamp its loss-making Nigerian private phone operator Multi-Links.

Telkom said in a statement Hedberg, an American who joined South Africa's No. 3 operator Cell C in 2006 with the mission of turning it around, would be charged with making Multi-Links Ebitda (earnings before interest, tax, depreciation and amortisation) positive by the 2010/11 financial year.

"Turning around Multi-Links' performance is vital to Telkom given the extent of the group's investment and the enormous opportunity the Nigerian market provides," CEO Reuben September said in a statement.

"We expect Multi-links to be Ebitda positive by 2010/11 and become cash flow positive by 2011/12," he added.

Multi-Links was touted as a big money-spinner when Telkom bought it two years ago thanks to Nigeria's vast untapped telecoms market. But it reported an Ebitda loss of R226m in the year to end March and a net loss of R1.76bn.

- Reuters

 
 
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