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Cell C has published its interim results for the six months ended June 2020, reflecting a R7.5-billion net loss after tax.

 

The company said this loss was mainly as a result of once-off costs and adjustments, and also reflects impairments to the value of R5 billion.

 

R5 billion worth of Cell C’s network and right-of-use assets were impaired due to the new MTN network arrangement.

 

The company’s reported EBITDA is lower than the same period last year at R1.2 billion, and EBIT was declared at a loss of R.53 billion compared to a profit of R90 million in the first half of 2019.

 

Cell C said that excluding once-off recapitalisation and restructure costs, EBIT for H1 2020 would have been at R162 million – an improvement of 80%.

 

“We remain focused on restructuring the balance sheet and optimising the business for long-term competitiveness,” said Cell C CFO Zaf Mohamed.

 

“We have a legacy debt challenge in our balance sheet, rather than an income statement one which will be addressed with the recapitalisation.”

Cell C CEO Douglas Craigie Stevenson said the company is on track with regards to its turnaround plan.

 

He said he expects operating margins to improve over the medium term as Cell C transitions to its new business model.

 

Source: MyBroadband

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