Cell C a big drag on Blue Label earnings

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Blue Label Telecoms has cautioned shareholders that Cell C will be a drag on its full-year earnings.

is Cell C’s largest shareholder, with a 49% shareholding. Blue Label has said previously that it may move soon to take a controlling stake in the business.

Blue Label’s core business, meanwhile, excluding “extraneous contributions and non-recurring income from the current and prior years”, continues to perform well, with earnings per share and headline EPS expected to increase by 8% and 9%, respectively, for the full year.“The core businesses of the Blue Label group have consistently demonstrated growth in revenue, gross profit and core headline earnings per share for the year ended 31 May 2023.

Blue Label shares fell more than 5% on Thursday on the back of the trading update. At R3.30 apiece, they’re near their 52-week low, and have lost more than half their value in the past year. Blue Label will publish its 2023 full-year results next Wednesday, while Cell C is expected to provide an update on its financial performance and its strategy on Monday. –

 

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