This is how badly Cell C was losing money

Blue Label Telecoms recently sent a circular to shareholders which contained a look at Cell C’s financial statements.

This included financial statements for 2013, 2014, 2015, and the first six months of 2016.

In the six months ended June 2016, Cell C generated R6.963 billion in revenue and made a profit of R2.8 million.

Although this profit is low, it is a significant improvement compared to the same period last year – where Cell C made a loss of R1.158 billion.

Looking at the company’s results between 2013 and 2015 makes the recent improvement even more impressive.

Over the three years, Cell C’s total losses come to R14 billion.

Cell C statements of comprehensive income 2015 (R’000) 2014 (R’000) 2013 (R’000)
Revenue 13,228,448 11,634,148 11,502,448
Other income 243,397 144,248 1,393,640
Operating expenses (13,397,014) (13,067,478) (13,186,579)
Profit/(loss) before equity accounted earnings, net finance cost and tax 74,831 (1,289,082) (290,491)
Finance income 774,044 525,774 245,273
Finance costs (6,493,473) (3,170,653) (3,434,063)
Share of profit in/(impairment of) equity accounted joint venture 149 110,452 (59,202)
Loss before tax (5,644,449) (3,823,509) (3,538,483)
Income tax (1,043,878)
Loss and total comprehensive loss for the year (5,644,449) (4,867,387) (3,538,483)
Earnings per share (cents) (880,569,267) (761,719,405) (617,536,300)

Now read: This is how much money Cell C makes

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This is how badly Cell C was losing money