The Johannesburg Stock Exchange has threatened Blue Label telecoms with a listing suspension after the company failed to comply with the bourse’s requirements.
In a statement on Tuesday (1 October), the JSE said that Blue Label failed to distribute its annual financial statements and notice of the annual general meeting within the four-month period stipulated in the JSE’s listings requirements.
“If the abovementioned company still fails to distribute its annual report on or before 31 October 2019, then its listing may be suspended,” it said.
On Monday (30 September), Blue Label said that its integrated annual report and notice of annual general meeting will be made available on 29 October 2019.
The delayed statements follow a troubled period for Blue Label.
At the end of September, the company reported a decline in earnings for the year ended May 2019, including a 3% drop in group revenue to R25.9 billion as losses incurred by Cell C weighed.
Losses at Cell C amounted to R3.6 billion, while Oxigen Services India lost R86.6 million, and Blue Label Mexico lost R24 million.
The group reported a headline loss of 312.49 cents per share, and a core headline loss of 304.77 cents per share.
Earnings per share and headline earnings per share decreased from 131.13 and 130.44 cents per share to negative 727.81 and negative 312.40 cents per share respectively. Net asset value per share decreased from R10.88 to R2.59.
“It is evident that the investment in Cell C had a significant negative impact on group earnings,” Blue Label said.
“However, the contemplated national roaming agreement will result in substantial cost savings for Cell C by reducing network and capital expenditure. These savings will further be enhanced on completion of an intended extensive capital restructure objective.”