Financially distressed mobile operator Cell C said the second half of its 2019 financial year showed a solid turnaround in its fortunes, with a R1-billion improvement in Ebitda.
Browsing: Blue Label Telecoms
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Though there is “significant doubt” over Cell C’s ability to continue as a going concern, the mobile operator’s biggest shareholder, Blue Label Telecoms, said on Friday that “management believes it is more likely than not” that the company will survive.
While big technology shares in the US have continued to hit new highs in 2020 – among them, Microsoft, Apple, Amazon, Google and Nvidia – JSE-listed IT companies have had a torrid start to the new decade.
Blue Label Telecoms said on Monday it will report a sharp swing back into profit in the six months ended 30 November 2019 after previously writing down the value of its 45% stake in mobile operator Cell C to zero.
It’s been a grim start to 2020 for some South African-listed technology companies, which have seen their shares battered on weak earnings updates and negative investor sentiment.
Cell C has defaulted on the payment of interest on a $184-million loan, which was due in December 2019, along with interest and capital repayments related to bilateral loan facilities with various lenders.
Vodacom is in talks with Cell C about taking on the smaller rival’s contract-paying mobile phone customers, a move that would strengthen its position as South Africa’s telecommunications market leader, sources said.