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Blue Label Telecoms has published its financial results for the six months ended November 2018, showing a net loss of R116.5 million for the period on the back of a large negative contribution from Cell C.<\/p>\n
For the half year, Blue Label reported gross profits of R1.31 billion (up 15% from the prior year), with revenue of R12.3 billion, down from R13.6 billion before.<\/p>\n
Core headline earnings for the six months ended 30 November 2018 equated to a negative 11.39 cents per share.<\/p>\n
The group reported a net loss of R116.5 million due to losses from its join ventures, including Cell C and Blue Label Mexico, which totalled R138 million. This was from gains of R1.35 billion in the prior comparative period.<\/p>\n
Blue Label bought a 45% shareholding in Cell C through a subsidiary in August 2017, and has subsequently provided the network\u2019s financial performance as part of its results presentations.<\/p>\n
The company shared Cell C\u2019s financial statements for the year ended 31 December 2018 – which showed a big loss for the mobile operator.<\/p>\n
Cell C recorded revenue of R15.69 billion in 2018, but suffered a total comprehensive loss of R1.27 billion, stated the results.<\/p>\n
For the six months ended November 2018, Cell C’s net loss amounted to R634 million.<\/p>\n
Blue Label’s share thereof, due to its 45% stake in the company, amounted to R285 million, with the company noting that its accounting policies exclude equity-settled share-based payment charges from its associates.<\/p>\n
“Accordingly, an adjustment of R51 million and R106 million respectively was required. The net result was a negative contribution of R128 million to Blue Label’s core earnings,” it said.<\/p>\n