Blue Label Telecoms, which bought a 45% stake in Cell C in 2017 for R5.5-billion, has said in its annual report that it is “extremely disappointed” in the performance of the mobile operator.
Blue Label Telecoms co-founders and co-CEOs Brett and Mark Levy are stepping down as non-executive directors of the Cell C board with immediate effect.
Blue Label Telecoms co-CEO Brett Levy says it has been a tough year, but that the interest in Cell C is higher than expected.
Cell C wants to move its entire network to rival operator MTN and essentially become a high-level mobile virtual network operator (MVNO) as part of its turnaround strategy.
South Africa’s third-biggest mobile operator has put core parts of the business up for sale as it struggles with R9-billion of debt and deepening losses.
TechCentral sat down with Cell C’s CEO and chief financial officer to discuss the operator’s plan not only to pull itself back from the brink but to put itself on a sustainable financial footing.
A day before Blue Label Telecoms reports its annual results, the technology group has announced it will sell various businesses, including part of 3G Mobile, to deleverage its balance sheet.
Shares in Blue Label Telecoms enjoyed a rare upswing on Friday, a day after it issued a trading update that showed its core business continues to perform well despite the ongoing woes at Cell C.
Blue Label Telecoms and Net1 said the fair value of Cell C is nil (R0.00), but the mobile operator remains upbeat about its future after an improved performance in recent months.
Blue Label Telecoms will take an almost R6.71/share hit to its earnings per share for the full-year to 31 May 2019 thanks to the ongoing woes at Cell C, it warned on Thursday.