Mobile operator Cell C has reported R2.36-billion in profit before tax, a huge turnaround in fortunes from the R10.69-billion loss it reported a year ago.
Cell C disclosed the PBT figure to TechCentral on Thursday when its largest shareholder, Blue Label Telecoms, published full-year results for the period ending 31 May 2021. The Cell C PBT figure is for the same trading period.
“Cell C has reported a significant turnaround in profitability,” said CEO Douglas Craigie Stevenson. Cell C’s financial year ends in December, and so the R2.3-billion PBT amount does not form part of its audited accounts. It is expected to publish its first-half results to 30 June in late September or early October.
The mobile operator’s fortunes are certainly looking up: It also reported 130% swing in earnings before interest and tax – there was a significant impairment of network assets in the previous financial year – and a 10% decrease in operating expenses, specifically network costs “in line with strategy”, Craigie Stevenson said.
Average prepaid revenue per user climbed by 19% year on year. Overall Arpu was R76.
Blue Label, meanwhile, disclosed that Cell C reported revenue for the 12-month period to end-May of R13.95-billion from R14.59-billion previously.
Meanwhile, it’s understood that a planned recapitalisation of Cell C, aimed at addressing the large amount of legacy debt on its balance sheet, is nearing finalisation and will be announced soon. – © 2021 NewsCentral Media