Blue Label Telecom co-chief executive officer Brett Levy admits that the company’s investment into Cell C was a bad move for the group, but he remains hopeful that the operator can turn things around as it hunts for a new equity partner.
The Johannesburg Stock Exchange has threatened Blue Label telecoms with a listing suspension after the company failed to comply with the bourse’s requirements.
Blue Label Telecoms faces the threat of a listing suspension by the JSE for not publishing its annual reports.
Cell C chief executive officer, Douglas Craigie Stevenson, says that the beleaguered company has a future despite the negative press coverage in recent month around its financial position.
Blue Label on Thursday (26 September) reported a decline in earnings including a 3% drop in group revenue to R25.9 billion as losses incurred by Cell C weighed.
Blue Label Telecoms has announced that it will sell interests in various business units to raise capital.
The JSE has warned Blue Label Telecoms that it needs to publish its financial results before the end of September, or face possible suspension.
Blue Label Telecoms has warned shareholders that it expects headline earnings for the year ended May 2019, to be down by at least 20% from the prior year, as it tries to quantify the impact of Cell C’s financial woes on its balance sheet.
Says ‘no material concerns or issues have been uncovered as a result of Cell C’s new management’.
Blue Label Telecoms has moved to allay fears around network operator Cell C, after the mobile operator published an open letter discussing the many difficulties the group faces.