Cell C’s majority shareholder expects to start seeing returns on its multibillion-rand investments in the mobile operator in 2025.
Cell C ’s majority shareholder Blue Label Telecoms expects to start seeing returns on its multibillion-rand investments in the mobile operator in 2025.
In the financial results, Blue Label said its subsidiary Comm Equipment Company, which is directly linked to Cell C, showed a negative impact of R368 million, while the remaining group operations contributed an additional R110 million compared to the previous year. “Our initial investment in Cell C was R5.5 billion, with an additional R800 million that we invested afterwards. In the recap of 2022, we invested another R1.2 billion. Our total investment in Cell C from an equity point of view is R7.5 billion, plus or minus. We are planning on getting that back.”“We sold a piece of our book to African Bank for the purpose of funding Cell C an additional R1.2 billion, which was part of the recap programme of 2022.
“We have seen significant improvement in our network and we are seeing great performance throughout the country,” said Mendes.“The magic is that if we were to build our own infrastructure, we would spend something between R35 billion to R40 billion in capex, and we would have to spend another R10 billion in capex per year to at least try and compete with Vodacom and MTN.
“The previous agreements created a bottleneck in terms of us really going forward with launching new products.”
Blue Label Telecoms Brett Levy Jorge Mendes Comm Equipment Company Mobile Virtual Network Operator MVNO
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