TCS | Signal restored: Unpacking the Blue Label and Cell C turnaround

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TechCentral’s guests in this episode of the TechCentral Show believe Blue Label Telecoms and its affiliate (and soon to be subsidiary) Cell C present a compelling investment case.
Philip Short, global portfolio manager at Flagship Asset Management – which counts Blue label as its sole South African investment – and Dylan Bradfield, portfolio manager at Sharenet, tell TechCentral editor Duncan McLeod that they believe the turnaround taking place at Cell C is real, and will have a meaningful impact on Blue Label shares.
Blue shares, which have already rallied strongly – which have more than doubled in the past six months – could still have plenty of room to run, according to Short.
In this episode of the TechCentral Show, Short and Bradfield unpack:
• Blue Label’s announcement earlier this month that it is considering a JSE listing for Cell C;
• Why Cell C’s restructured operating model and strategy makes sense, and why that’s good news for Blue Label shareholders;
• The role of Cell C CEO Jorge Mendes in the turnaround – and what the opportunity is for the mobile operator with its new “asset-light” model of running its network – management of its radio access network has effectively been outsourced to partners (and competitors) MTN and Vodacom;
• Which operators would be most vulnerable to a resurgent Cell C;
• The importance of Cell C’s strategy around mobile virtual network operators and the significance of its relationship with Capitec;
• The move by Blue Label to sell Comm Equipment Company to Cell C – good move or not?
• Whether Cell C can compete with Telkom, Vodacom and MTN in the business market, something Mendes has signalled his desire to do;
• What the listing of Cell C could look like, what management’s focus should be before the listing and what kind of valuation the business could attract; and
• How much more value could be unlocked for Blue Label shareholders.
Don’t miss a fascinating discussion!
28 May English South Africa Technology · Business

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