INTERIM RESULTS
Blue Label falls to low on Cell C results
Cell C’s interim results show that net debt excluding leases has fallen nearly R11bn to R7.3bn at the end of June
Shares in Blue Label Telecoms closed at their lowest level in more than five years on Tuesday after Cell C interim results disappointed investors. Blue Label, which bought 45% of the mobile operator in a recapitalisation deal a year ago, closed 8% down at R7.70 — the lowest since June 2013 — as Cell C said total revenues grew just 5% in the six months to June and debts climbed. Its service revenues grew a healthier 11% to R6.9bn, though total revenues were dented by a sharp fall in handset sales as the lower end of the postpaid business slowed and as some data subscribers were lured away by competitors’ promotions. Meanwhile, net debt grew to R7.3bn, from about R6bn at the time of Cell C’s recapitalisation, as the firm started building its network again. But those investments helped it trim its interim loss by a third, to R645m. Cell C has struggled to break even since its 2001 launch — its only annual profit came in 2017 — but CEO Jose Dos Santos suggested the operator is closing i...
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