Cell C Recapitalisation
Cell C’s Recapitalisation Finally Concludes: The Details
Blue Label Telecoms, together with various subsidiaries, has today concluded binding long-form agreements with Cell C and various Cell C financial stakeholders, including different shareholders and creditors to complete the recapitalisation of the struggling South African telecom. In terms of the deal, Cell C will be restructured and refinanced with the purpose of deleveraging its balance sheet, providing it with liquidity with which to operate and grow its businesses and position itself to achieve long-term success for the benefit of its customers, employees, creditors, shareholders and its other stakeholders. Cell C has implemented a turnaround strategy, focusing on operational efficiencies, reducing operational expenditure and optimising traffic. This includes a significant reduction in...
South Africa’s Cell C Continues to Bleed Money, Reports Main Stakeholder
One of South Africa’s largest telecoms, Cell C, made a loss of nearly $150-million between 1 June 2021 and 31 May 2022, according to a report from Blue Label Telecoms, which bought a 45% stake in the company in 2017. In a statement released last year, Cell C CEO Douglas Craigie Stevenson said that Cell C’s financial performance had improved, making a net profit of $9.8-million, and the business was making “good progress on the implementation of our new business model and the introduction of new products to market.” Cell C also said it had grown its subscribers from 11.7-million in H1 2020 to 13 million by the end of 2021. But despite its growth in users it continued to post losses in revenues. At that time the company said that the contract and broadband revenue decreases were in line with...
Cell C Reports R7.5 Billion Loss
Image sourced from Town Press Cell C has released its interim results for the six months to June 2020. This inside look at the telco shows that it made a R7.5 billion net loss after tax. This loss, according to a report by My Broadband, was due to a number of ‘once-off costs’, and also reflects impairments to the value of R5 billion. Normalised earnings showed a 64% improvement to R1.8-billion, reflecting the overall impact of the new management team’s strategic focus on optimising its network as well as its emphasis on more profitable customers. However, overall revenue was at R6.9-billion compared to the six months of the previous year (2019: R7.4-billion). More than 89% of its revenue comes from service revenue which was 6% lower at R6.5-billion, while hybrid and Fibre-to-Home saw an in...
