Telecom giant Cell C is once again under the spotlight after a staggering R10 billion discrepancy was discovered between its reported assets and those disclosed by its largest shareholder, Blue Label Telecoms.
According to the two companies’ most recent financial statements, Cell C reported R5.07 billion in total assets, while Blue Label — which holds a controlling stake in the mobile operator — listed R15.02 billion in assets for the same period. The difference of nearly R10 billion has raised serious questions about the accuracy and credibility of Cell C’s financial reporting.
A Pattern of Inconsistency
This isn’t the first time Cell C’s financial numbers have caused confusion. The company has a long history of inconsistent and unreliable reporting, with conflicting figures released across different financial updates.
In November 2023, Cell C issued a trading update with audited figures for its 2021 and 2022 financial years, which sharply contradicted earlier numbers shared with the market.
For example, the company initially claimed a R2.45 billion profit in 2021, but later revised it to a R92 million loss. Similarly, its EBITDA (earnings before interest, taxes, depreciation and amortisation) for 2021 was originally reported as R2.85 billion, but was later restated at just R200 million — a shocking 92% reduction.
Chief Financial Officer El Kope attributed the discrepancy to the fact that the earlier reports were unaudited.
“Previous numbers we provided to the market were not audited. The numbers we are now sharing are fully audited,” she said.
However, analysts argue that the explanation does little to restore confidence, especially given the recurring pattern of unreliable reporting.
The Latest Discrepancy
In its unaudited results for the 12 months ending 31 May 2025, Cell C claimed to have achieved a “stronger balance sheet” and structural improvements in its finances.
The company reported:
Assets: R5.072 billion (a 22% increase year-on-year)
Liabilities: R13.379 billion (up 8%)
Equity: -R8.305 billion
Cell C attributed the rise in assets partly to recognising deferred tax assets after what it described as a return to profitability.
However, Blue Label’s financial report for the same period paints a vastly different picture, listing:
Assets: R15.020 billion
Liabilities: R16.065 billion
Equity: -R1.044 billion
This shows a R9.946 billion gap in reported assets and R2.686 billion in liabilities, alongside a R7.26 billion difference in equity.
When questioned about the discrepancies, Cell C declined to comment, refusing to clarify which figures investors and analysts should use when modelling the company’s financial position.
A History of Mismatched Numbers
Cell C’s financial inconsistencies stretch back years, often making it impossible for analysts and investors to get a clear sense of its actual performance.
Under former CEO Jorge Mendes, the company promised to improve transparency and consistency in its reporting. Yet, the latest figures suggest little progress has been made.
The historical data shows that since 2017, Cell C’s reported assets and liabilities have repeatedly diverged from those disclosed by Blue Label, its parent company.
| Year | Cell C Assets (R’000) | Blue Label Assets (R’000) | Difference |
|---|---|---|---|
| 2017 | 18,949,193 | 18,948,000 | ≈0 |
| 2019 | 13,943,000 | 26,114,208 | 12,171,208 |
| 2021 | 6,334,000 | 19,794,981 | 13,460,981 |
| 2025 | 5,074,000 | 15,020,220 | 9,946,220 |
The discrepancies are too large to be explained by simple accounting differences or consolidation methods, leading many to question the reliability of Cell C’s internal reporting and governance processes.
The Bigger Picture
Blue Label Telecoms, which rescued Cell C from financial collapse in 2017 and again in 2022, has consistently assured investors that the mobile operator’s turnaround is “on track.” However, these conflicting figures could undermine market confidence in both companies.
Cell C’s debt restructuring and ongoing operational challenges — including declining market share and network reliance on MTN — have already put pressure on the group. Now, transparency concerns could make it harder to attract new investors or secure future funding.
Silence and Uncertainty
When asked about the nearly R10 billion gap, both Cell C and Blue Label have remained largely silent. Analysts warn that without a clear explanation, the discrepancy could become a major credibility crisis for the telecoms group.
With no clarification from Cell C and no consistent financial narrative, the company’s balance sheet remains a mystery — one that investors, analysts, and South Africa’s telecom industry continue to watch closely.
