However, when excluding the positive contributions of R66 million in FY24 and negative contributions of R523 million in FY23, core headline earnings declined by R312 million (-34%) from R925 million to
R613 million.<\/p>\n\n\n\n
“This decline in core headline earnings was attributable to a decrease of R188 million in CEC, while the remaining entities within the Group declined by R124 million compared to the prior year.” <\/p>\n\n\n\n
“The decline in CEC\u2019s core headline earnings was primarily attributable to a decline in gross profit stemming from a decrease in earnings resulting from the expiry, in November 2022, of certain elements of the revenue-sharing agreement, increased expenditure related to the distribution agreement and an increase in the amortisation of handset subsidies.” <\/p>\n\n\n\n
“The declines were offset by a reduction in the expected credit loss following a comprehensive base reconciliation at the end of the previous financial year as well as the derecognition of the expected credit loss on the sale of a portion of its handset receivable books.”<\/p>\n\n\n\n
As per Cell C’s recapitalisation and working capital requirements, The Prepaid Company Proprietary Limited (TPC) is required to buy R1.2 billion of additional prepaid airtime through four quarterly payments of R300 million each. <\/p>\n\n\n\n
To fund Cell C’s working capital requirements, CEC sold a part of its handset receivable book to financial institutions. The funds generated from this transaction were transferred from CEC to TPC and ultimately to Cell C through the acquisition of airtime. <\/p>\n\n\n\n
The other entities within the group, particularly TPC, saw a reduction in core headline earnings due to the cessation of certain rebates and a reduction in discounts from Cell C following its recapitalisation.<\/p>\n\n\n\n
Earnings per share increased from 30.48 cents in FY23 to 72.49 cents in FY24. <\/p>\n\n\n\n
However, when excluding the contributions resulting primarily from the recapitalisation transaction of Cell C from FY23 and FY24, earnings per share and headline earnings per share declined by 35% to 65.07 cents per share and 66.22 cents per share<\/strong>, respectively<\/p>\n\n\n\n The Board of Directors thus did not declare a dividend for the year. <\/p>\n\n\n\n The group’s financial results can be found below: <\/p>\n\n\n
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