Blu Label’s Normalised Earnings Reach R398 Million Amid Transformation to Digital Platform

Blu Label Unlimited Group Limited  (formerly Blue Label Telecoms Limited), listed on the JSE under the code BLU, has released its unaudited financial results for the six-month period ending 30 November 2025, highlighting disciplined execution, strategic milestones, and a focus on long-term sustainable growth. The Group continues its transition from a traditional telecommunications distributor to a diversified digital infrastructure and enablement platform, supported by improving revenue quality, stable margins, and strong cash generation.

A defining milestone during the period was the successful restructuring and listing of Cell C Limited, repositioning it as a leaner, asset-light operator with a strengthened capital framework and enhanced cost base. The transaction reduced risk, improved earnings visibility, introduced transparent market valuation, and provided independent access to capital for Cell C. Post-period, BluEnergy secured a multi-year energy trading licence from NERSA, enabling participation in South Africa’s power sector reform and positioning the Group to deliver renewable energy solutions to municipalities and independent power producers.

The Group’s reported results were materially affected by IFRS accounting effects arising from restructuring transactions and the Cell C listing, which are non-operational and do not reflect Blu Label’s core operational performance. To provide clarity, the Group also reported normalised financial results excluding Cell C and Comm Equipment Company (CEC), as well as other extraneous restructuring-related items, offering a clearer view of sustainable earnings.

Normalised financial highlights for the six months include revenue of R5.02 billion, gross income of R1.353 billion, EBITDA of R535 million, net profit after tax of R389 million, and core headline earnings of 44.19 cents per share. An interim dividend of 43.56 cents per share has been declared, reflecting confidence in the Group’s financial position and sustainable earnings outlook.

Following the restructuring, Blu Label will equity-account for its 49.47% shareholding in Cell C, which will now include CEC earnings, enhancing earnings visibility and providing a comprehensive view of the Group’s total profitability. The Group’s statement of financial position has been simplified, with a more transparent balance sheet and stronger capital base enabling focus on scalable digital platforms and technology-enabled services.

Reported financial results, which include Cell C’s consolidated results and CEC contributions, show revenue of R8.64 billion, a net loss of R5 billion attributable to the investment in Cell C, and core headline earnings of R374 million. The reported net loss reflects accounting impacts from the disposal and remeasurement of Cell C, but headline and core earnings continue to reflect underlying operational performance.

Looking ahead, Blu Label enters the second half of the financial year with strong operational momentum, improved earnings visibility, and a clear pathway to medium-term value creation. Core prepaid distribution and payments operations remain resilient, while strategic investments in data analytics, AI, digital platforms, and renewable energy move from development to commercial execution.

The Group has resumed dividend distributions, with an interim dividend of 43.56126 cents per share approved, payable from 23 March 2026. The dividend will be subject to a 20% withholding tax for non-exempt shareholders, resulting in a net payout of 34.84901 cents per share.

Blu Label’s full interim results are available on the JSE and the Group’s website, providing comprehensive financial and operational details.