Blu Label Unlimited Reports R5.2 Billion Loss Following Cell C Listing, But Core Operations Show Resilience
The trading statement underscores that the R5.2 billion loss is non-operational and linked specifically to the Cell C listing and ownership changes.
Blu Label Unlimited Group Limited has disclosed a significant R5.2 billion net loss linked to its investment in Cell C Limited , following the mobile operator’s listing and related restructuring. The loss is the central factor driving a sharp decline in reported earnings for the six-month period ended 30 November 2025, according to a trading statement released on the JSE Limited.
The company expects basic earnings per share to fall by more than 20% compared with the same period in 2024. The impact stems largely from the accounting treatment of Cell C’s listing, which triggered a R6 billion loss on the disposal of Blu Label subsidiary The Prepaid Company’s controlling stake and Comm Equipment Company. This was partly offset by a R841 million gain from the remeasurement of Blu Label’s previously held interest when it acquired control of Cell C in September 2025, resulting in the net R5.2 billion loss added back for headline earnings.
As part of the restructuring, Blu Label relinquished control of Cell C at the end of November 2025, retaining a 49.47% interest. From that point, Cell C is equity-accounted as an associate rather than a subsidiary. Blu Label’s interim results therefore include a mix of equity-accounted and consolidated contributions from Cell C and CEC, reflecting the transitional nature of the transaction around the listing date.
Excluding Cell C and once-off restructuring items, Blu Label said its underlying operations remained profitable, with pro-forma revenue of R5 billion, EBITDA of R535 million and net profit after tax of R389 million for the period. Core headline earnings would have amounted to R398 million, or 44.19 cents per share, highlighting a materially stronger operational base than the statutory results suggest.
The trading statement underscores that the R5.2 billion loss is non-operational and linked specifically to the Cell C listing and ownership changes. Blu Label’s full financial results for the six-month period are scheduled for release on 25 February 2026, when investors are expected to focus on the group’s earnings outlook post-Cell C restructuring.
