Cell C reported a total comprehensive loss for the 2018 financial year of R1.3-billion, a filing on shareholder Blue Label Telecoms’ website on Thursday shows. The results are preliminary and unaudited.

Revenue from continuing operations was R15.7-billion, roughly in line with the prior year’s number. Operating profit before finance costs and income as well as before income tax was R1.4-billion, down from R5.4-billion previously.

Interest-bearing loans and borrowings rose to R6.5-billion, from R5.8-billion in 2017.

The mobile operator reported a net loss of R634-million in the six months ended 30 November 2018. This figure was disclosed in Cell C shareholder Blue Label Telecoms’ interim results for the same six-month period, which were published on Thursday. Blue Label, which owns 45% of Cell C, said its share of the net loss amounted to R285-million. Cell C’s financial year ends on 31 December.

“Blue Label’s accounting policies exclude equity-settled share-based payment charges from its associates and has not early adopted IFRS 16. 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,” the JSE-listed group said.

For the 10 months ended May 2018, Cell C’s net profit amounted to R1.14-billion. This comprised trading losses of R782-million offset by the recognition of a deferred tax asset of R1.92-billion. Blue Label’s share of this net profit was R512-million.

“In line with Blue Label’s accounting policies as above, an exclusion relating to equity-settled share-based payment charges from its associates and the reversal of the early adoption of IFRS 15 and IFRS 16, resulted in a positive adjustment of R65-million and a negative adjustment of R6-million respectively. The net result was a positive contribution of R571-million to Blue Label’s core earnings.” — (c) 2019 NewsCentral Media