Cell C’s net loss after tax included impairments to the value of R6.275bn from an annual impairment test on the carrying value of the property, plant, equipment and intangible assets.
“The impairment was calculated at the higher end of fair value less cost to sell or the value in use. It should be noted that future impairment assessments may result in the reversal of impairments recognised in this period,” the group said.
Chief executive Douglas Craigie Stevenson on Thursday acknowledged that the results, which had been delayed, had hurt the company's shareholders while he laid out a plan that looked at operational and network efficiencies.
“Cell C has taken active steps to reduce its focus on pure revenue and subscriber growth to focus on profitable, long-term growth in prepaid and contract segments,” he said.