TELECOMMUNICATIONS
Cell C-investor Blue Label plunges 25% on poor results
The group reports a 10% drop in revenue to R12.3bn, dragged lower by a 22% decline in prepaid airtime and data sales
Blue Label Telecoms, which distributes prepaid electricity and airtime, lost more than a quarter of its market value on Thursday after releasing disappointing interim results. The group’s shares closed 25.5% lower at R4.56, the biggest daily decline since listing in 2007. It has a market capitalisation of R4.2bn. Blue Label reported a core headline loss of R105m for the six months to end-November, with its share of losses from Cell C amounting to R123m. It owns a 45% stake in SA’s third mobile network operator Cell C. The group reported that revenues fell 10% to R12.3bn, dragged lower by a 22% decline in prepaid airtime and data sales. "Prepaid sales were very weak. We know the consumer’s under immense pressure, so it’s nothing new, but this is their bread and butter," said Imtiaz Suliman, portfolio manager at Sentio Capital.
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