INCREASE IN GROSS PROFIT OF 15% TO
INCREASE IN GROSS PROFIT MARGIN FROM 8.37% TO
CORE HEADLINE LOSS OF
11.39 cents per share**
Core headline earnings for the six months ended 30 November 2018 equated to a negative 11.39 cents per share, post a dilution resulting from the issue of additional shares to facilitate part-payment of the acquisitions of Cell C and 3G Mobile as well as the negative impact of the underlying factors expounded upon below.
The interim results for the comparative period ended 30 November 2017, incorporated the Group’s share of profits in Cell C of R928 million, inclusive of the recognition of a deferred tax asset of R865 million. This was a once-off recognition to earnings in that period. During the current reporting period, the Group’s share of losses in Cell C equated to R123 million. The negative movement to Group core headline earnings by Cell C amounted to R1.05 billion.
In terms of the restructure of Cell C’s debt to third-party lenders, The Prepaid Company (TPC) was obligated to purchase bond notes issued by SPV1... Detailed commentary