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: Douglas Craigie Stevenson
Earnings are up, margins are stabilising and there is a ruthless approach to cutting additional costs out of the business. A recharged Cell C is being built that creates value for its stakeholders.
It’s not all doom and gloom at Cell C, apparently. The debt-laden mobile operator has managed to scrounge up the cash to renew its sponsorship of Sharks Rugby.
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.
Shares in Telkom soared shortly after markets opened in Johannesburg on Friday as investors took cheer from the fact that the it won’t be burdened with rival Cell C’s debt problems.
Cell C is pulling the plug on Black, its ill-fated video-on-demand platform in which it invested well north of R1-billion since its launch just two years ago.
Cell C’s expanded roaming agreement with MTN South Africa, which was signed at the weekend, “adheres to all applicable legal and regulatory requirements”, the companies said.
Telkom on Friday informed investors that it is pursuing an acquisition of Cell C. So, why didn’t Telkom just say so in the first place? By Duncan McLeod.
Multiple sources close to Cell C have rubbished a report that China Mobile is about to strike a deal to buy a stake in the troubled South African mobile operator.
South Africa’s third-biggest mobile operator has put core parts of the business up for sale as it struggles with R9-billion of debt and deepening losses.