Investors dump Blue Label as full horror of Cell C dawns
Analysts reckon SA’s third-largest mobile operator might only survive if it stops trying to compete
Shares in Cell C’s biggest shareholder, Blue Label Telecoms (https://www.sharenet.co.za/v3/quickshare.php?scode=BLU), fell the most in more than 10 weeks after the company reported a full year loss that was equal to more than double its market capitalisation.
Blue Label, which owns 45% of Cell C, said trading losses and debt problems at SA’s third largest mobile operator helped push it into a R6.6bn loss for the year to end May. The company has a market capitalisation of about R2.71bn.
After months of speculation about the full effect of Cell C’s declining fortunes on Blue Label, the news sent the company’s shares down more than 12% to R2.97, bringing the 2019 loss to 45%. In 2018, the stock lost almost 64% of its value. ..