Author: Gugu Lourie
JSE-listed Blue Label Telecoms has tried to reassure the market after its share price plummeted by more than 7.43% to close at R2.74 a share on Thursday. At 15:58, the share price was down 1.47% at R2.68 and the stock has tumbled 23% in the past seven days. For more read: Blue Label Telecoms Shares Continue to Tank as Tough Week Continues for Cell C The company, which owns half of the ailing Cell C, referred investors to the announcement by the mobile phone operator in which S&P Global Rating published a report downgrading Cell C to D (Default). Blue…
Shares in Blue Label Telecoms have continued to dive after a week to forget for the JSE-listed group. On Thursday, shares in Blue Label Telecoms, which owns half of Cell C, tumbled 7.43% to close at R2.74 a share. Blue Label Telecoms’ share price reached a new low of R2.67 after dropping 1.84% by 13:07 today, pushing its market value to R2.4 billion. Back in October 2016, Blue Label Telecoms’ market value shot up to R19.3 billion when the firm invested in Cell C. The downward spiral of Blue Label Telecoms shares is attributed to the woes of Cell C,…
South Africans are increasingly unhappy with mobile service providers. But while they are unhappy they are not changing their mobile service providers, such as Vodacom, MTN, Cell C, and Telkom. The number of people choosing to change their mobile network operator without losing their mobile number is sitting at 77,019 every month. This is according to Number Portability Company (NPC), which was supposed to protect the customer by enabling him or her to vote with their feet when they are not happy with the Telco services, seems concerned with service woes. The NPC is owned jointly by Vodacom, MTN, Cell C, Telkom,…
Not so long ago Blue Label Telecoms was one of the darlings of the JSE, with its share price showing no signs of slowing down. Blue Label Telecoms listed on the JSE in November 2007 at R6.75 a share and attracted global tech giant Microsoft as an investor (which later sold its shareholding in 2010). The company’s growth enabled it to buy half of the mobile phone operator Cell C. Blue Label Telecoms’ market value shot up to R19.3 billion in October 2016 when the firm invested in Cell C. The market cap, however, has shrunk to about R3 billion…
Crisis-hit Cell C has defaulted on interest payments of loans due July 2019 on certain bilateral loan facilities totalling 40% of its total debt at Dec. 31, 2018, according to rating agency S&P Global Ratings, which today lowered the company’s rating to default. The mobile phone operator, which has been grappling with debt for some time now, has been a drag on its biggest shareholder Blue Label Telecoms. The operator is struggling to service an almost R9 billion debt load. Shares in JSE-listed Blue Label Telecoms, which owns half of Cell C, tumbled 7.43% to close at R2.74 a share.…
South Africa’s retailer Mr Price, which runs its mobile virtual network operator on a Cell C’s network since 2014, continues to make money from cellular and mobile. Its services are becoming an alternative to your traditional mobile phone companies, such as Vodacom, MTN, and Cell C, etc. However, MR Price is only known for its affordable and quality clothes. You may wish to know the amounts of money the company is making from the lucrative cellular and financial services. The retail group announced on Thursday that the insurance revenue of R81.1 million decreased 5.2% and cellular and mobile revenue increased…
Things keep getting worse for the JSE-listed group. At 12:20 today, Blue Label Telecoms shares fell 6.1% to slide all the way to R2.92 a share, pushing the company’s market value way below the R19.3 billion in October 2016 when the firm invested in Cell C. The company’s shares have more than halved in the past year, giving it a R3 billion in market value. This is more than R2 billion lower than the controversial R5.5 billion paid by Blue Label Telecoms for its 45% stake in Cell C. The latest reason why Blue Label Telecoms shares are tanking…
Last month, Cell C said it has appointed Bowmans Attorneys to “investigate any parts of the business where we suspect that there may be irregular business practices”. Given that Cell C executives have been accused of many things by #SAVECELLC and #CellCKwenzenjani group on social media the probe may in fact be overdue. For more read: R219 Million Paid To Three Top Execs At Cell C in 2017 The allegations are that executives have been dishing out contracts to family members. Even, S&P rating agency downgraded Cell C’s rating profile, placing it deeper into ‘junk’ status in June. Last week,…
The publication of the 2019 financial year results of JSE-listed group Blue Label Telecoms will be delayed until late September. Blue Label Telecoms informed investors on Monday that the delay is due to various issues related to Cell C. The JSE-listed group is the largest shareholder of Cell C, South Africa’s troubled mobile phone operator. The company informed investors that its financial results for the year ended 31 May 2019 will be released on SENS on 26 September 2019. The results had been expected to publish later this month. “Blue Label’s audit for the year ended 31 May 2019 is…
JSE-listed technology group Blue Label Telecoms shares took another nosedive on Thursday as it emerged that troubled Cell C has fallen behind on payments to MTN for using its network. Cell C has a roaming agreement with MTN. In its half-year results, MTN announced that it is owed R393 million by Cell C and has written off a part of the amount. The share price of Blue Label Telecoms was trading 1.55% lower at R4.46 a share by 15h00 on Thursday, reflecting investor concern that the troubles at Cell C may be far from being resolved. In 2017, Blue Label…