Starcomms set for sustainable growth, net debt drops by 36%
BY PETER EGWUATU
In a bid to ensure that it is properly aligned to capture growth opportunities, Starcomms has made important organizational changes by combining its corporate and enterprise businesses to take advantage of the tremendous opportunities around broadband and ICT growth in 2011 and beyond.
The company’s net debt also came down by 36 per cent to N16.846 billion from N26.52 billion in 2009 while total debt decreased by 26 per cent to N24.785 billion compared with N33.365 billion in 2009, resulting in reduced charges, which decreased by 15 per cent to N2.669 billion from N3.148 billion in 2009.
Managing Director and Chief Executive Officer, Starcomms Plc, Mr. Maher Qubain, disclosed this to shareholders of the company at the 13th yearly general meeting held in Abuja last week to consider the financial performance for the financial year ended December 31, 2010.
According to him, “ Starcomms Plc, has been positioned for sustainable growth in the future through enhancement of its core business and investment in new and emerging growth areas.
Under the positioning, the company has revitalized its offerings and made great strides in reducing its delivery costs. The company has also integrated all its technology capabilities into a new technology growth platform to provide clients with fully integrated technology solutions as well as focusing on growing market share and expanding its business in key geographic markets with special emphasis on profitable cities”
Continuing , Qubain said, “We are enhancing and expanding our capabilities around several defining areas that show potential for growth and profits, including enterprise, corporate, ICT and automation services,” adding that they will continue to invest in assets and innovations that differentiate Starcomms in the market.
In his own remark, the chairman of the company, Chief Maan Lababidi, said Starcomms stands by CDMA and is fully committed to bringing world_class products and services to the Nigerian public, remarking that proofs of the company’s ability to innovate and lead has been the strong growth in its data services, which is the future for telecoms operators worldwide.
Voice tariffs around the world have been declining in recent years due to competitive pressures and the need to offer lower and lower tariffs to attract consumers at the lower end of the socio_economic spectrum.
Speaking at the meeting, Sir Sunny Nwosu, National coordinator of the Independent Shareholders Association of Nigeria (ISAN) decried the prevailing difficult economic situation and high cost of doing business in the country, remarking that interest rate was hiked about two times last year while the cost of diesel went up significantly, thereby making it difficult for companies to plan and operate profitably.
Starcomms recorded appreciable growth in key areas during the financial year ended December 31, 2010.
The audited financial statement showed that revenue from the company’s data services increased by 21 per cent.
