The Levy brothers have only been involved in the last 9 months, it is a turnaround story unfolding. Vumatel has a total different target audience and is focusing on fibre sharing. That is the same as sharing a straw to drink a double thick milk shake. But let's not get lost in the woods.
Fact is since turn-around started the nett loss has decreased 33% (despite 28% decline in data prices)- logically that will take at most 2 more quarters to get CellC into positive territory. Best is some of the financing is done through airtime (vapor currency).
For argument sake, lets say in the next quarter CellC has another loss (at 33% decreased) it will be a R 300 million loss. And let's argue that they repeat the 56% net profit growth from the current R 1.4 billion. Think that covers the loss with a smile with some change left and guess there is some tax benefits in there too.
This doesn't make sense. Cell C partners with Fibre Network Operators like Vumatel and provide their fibre on an open access network by making services available to ISP's like Cell C? Vumatel is the Multichoice of Fibre in SA at the moment.
Let me ask you this. Why do you value Cell C a a loss making entity at a higher share price than profit making Telco's like Vodacom and MTN? These profit making Telco's share prices are in the doldrums at the moment? Why is Cell C a special case for you when they are in a worse financial position?