Cell C reported a total comprehensive loss for the 2018 financial year of R1.3-billion, a filing on shareholder Blue Label Telecoms’ website on Thursday shows. The results are preliminary and unaudited.

The mobile operator reported a net loss of R634-million in the six months ended 30 November 2018. This figure was disclosed in Cell C shareholder Blue Label Telecoms’ interim results for the same six-month period, which were published on Thursday.

Blue Label, which owns 45% of Cell C, said its share of the net loss amounted to R285-million. Cell C’s financial year ends on 31 December. The operator is expected to report its full-year numbers soon.The net result was a negative contribution of R128-million to Blue Label’s core earnings

“Blue Label’s accounting policies exclude equity-settled share-based payment charges from its associates and has not early adopted IFRS 16. Accordingly, an adjustment of R51-million and R106-million respectively was required. The net result was a negative contribution of R128-million to Blue Label’s core earnings,” the JSE-listed group said.

For the 10 months ended May 2018, Cell C’s net profit amounted to R1.14-billion. This comprised trading losses of R782-million offset by the recognition of a deferred tax asset of R1.92-billion. Blue Label’s share of this net profit was R512-million.

“In line with Blue Label’s accounting policies as above, an exclusion relating to equity-settled share-based payment charges from its associates and the reversal of the early adoption of IFRS 15 and IFRS 16, resulted in a positive adjustment of R65-million and a negative adjustment of R6-million respectively. The net result was a positive contribution of R571-million to Blue Label’s core earnings.”

Source: NewsCentral Media