Blue Label earnings dragged down by Cell C

Blue Label Telecoms said in a trading statement for the six months ended November 2018, that it expects to make a substantial loss, compared to the prior year.

The technology group, which is the majority shareholder of Cell C, said that it expects headline earnings per share to amount to a loss of 18.78 cents per share, from prior earnings of 166.68 cents per share. Earnings per share is expected to show a loss of up to 15.74 cents per share, from prior earnings of 167.43 cents per share.

Core headline earnings per share, Blue Label said, is expected to show a loss of up to  14.23 cents per share, from earnings of 168.42 cents in 2017.

“Although the core businesses of the Blue Label group generated positive growth, the once-off underlying financial adjustments relating to Cell C had a negative impact thereon,” it said.

“The financial results for the comparative six-month period ended 30 November 2017 included the recognition of a deferred tax asset by Cell C, of which the group’s share equated to R864 million. This was a once- off recognition to earnings in the comparative period,” Blue Label said.

Blue Label said it expects to publish its results on Thursday, 28 February 2019.


Read: ‘Reclusive billionaire’ buying a stake in Cell C

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Blue Label earnings dragged down by Cell C