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Here is how much money Cell C is making

Johannesburg - Full financial results of South Africa’s third largest mobile network, Cell C, have been revealed for the first time ever.

Cell C, which is not listed on the Johannesburg Stock Exchange (JSE), has in previous years only released snippets of its financial results to the media.

But amid JSE listed Blue Label Telecom [JSE:BLU] announcing earlier this month that it’s buying a 45% stake in Cell C for R5.5bn, the mobile network’s full results have been made public.

In a circular published by Blue Label on Tuesday to shareholders, it has been revealed that Cell C posted a profit of just R2.8m for the six months ended June 30 2016.This compares to a loss of R1.15bn for the period ended June 30 2015.

The financial statements reveal that Cell C recorded revenues of R6.96bn for the half-year period ended June 30 2016, compared to just over R6bn for the previous comparable interim period.

Meanwhile, the Blue Label circular reveals that Cell C posted a net loss of R5.6bn for year ended December 31 2015 with revenues of R13.2bn for that year.

The circular further says that Cell C’s subscriber base increased from approximately 9 million subscribers in 2012 to in excess of 25 million subscribers to date.

“Cell C’s network, currently consisting of 4 793 sites, addresses South Africa’s core voice segments, with 98% of the population covered,” reads the circular.

As part of Blue Label Telecoms plans to buy a 45% stake in Cell C, the current electronic distributor of South Africa’s grants system, JSE listed Net1 UEPS Technologies [JSE:NT1], plans to acquire a 15% stake in Blue Label.

Management and staff of Cell C will also subscribe for 25% of the issued capital. Meanwhile, 3C Telecommunications is set to hold the remaining 30% of the total issued share capital, said Cell C last week.

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