Cell C Faces R10 Billion Asset Discrepancy With Blue Label — Financial Reporting Under Scrutiny

Cell C has once again found itself at the centre of controversy after revealing financial results that don’t align with those of its largest shareholder, Blue Label Telecoms. The discrepancy — a staggering R10 billion difference in assets — has reignited long-standing doubts about the mobile operator’s financial transparency.

For years, analysts have struggled to make sense of Cell C’s financial statements, which have frequently contained inconsistent metrics and conflicting figures. This pattern has made it difficult to track the company’s true performance.

A notable example emerged in November 2023, when Cell C released a trading update featuring audited numbers for its 2021 and 2022 financial years. What caught the market’s attention was how drastically these new figures differed from earlier reports.

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Previously, Cell C claimed a R2.45 billion profit for the 2021 financial year — a figure later revised to a R92 million loss. Similarly, its reported EBITDA dropped from R2.85 billion to just R0.2 billion, a shocking 92% decrease.

Cell C’s Chief Financial Officer, El Kope, explained the discrepancies: “Previous numbers we provided to the market were not audited. The numbers we are now sharing are fully audited.”

Ongoing Issues Despite Promises of Transparency

These discrepancies are not isolated cases. Over the years, conflicting financial information has become almost synonymous with Cell C’s reporting practices. When Jorge Mendes assumed the role of CEO, he vowed to deliver clearer and more consistent updates to the market. However, that commitment appears to have fallen short.

The company’s unaudited financial results for the 12 months ending 31 May 2025 further highlight this ongoing issue. Cell C claimed it had strengthened its balance sheet, citing a 22% increase in assets to R5.072 billion — largely attributed to recognising deferred tax assets as it returned to profitability.

At the same time, total liabilities rose by 8% to R13.379 billion, driven by a reduction in trade and other payables offset by higher non-current shareholder debt. According to the company, related party debt transactions account for around 60% of its total liabilities.

However, Blue Label Telecoms — which holds the largest stake in Cell C — painted a very different financial picture. The telecoms group reported that Cell C’s assets stood at R15.020 billion and liabilities at R16.065 billion, figures that sharply contrast with Cell C’s own disclosures.

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