Blu Label Unlimited Group will post a massive basic earnings loss for the six months to end-November 2025, driven almost entirely by a R5.2-billion accounting hit linked to its disposal of control in Cell C – but the company is keen to draw attention to what it says is a far more meaningful picture of its underlying business.
The group, formerly known as Blue Label Telecoms, reported that basic earnings per share swung to a loss of between 554.68c and 556.44c/share, compared to positive earnings of 43.98c/share in the prior period. The collapse was caused by a net loss of R5.2-billion on its Cell C investment, comprising a R6-billion loss recognised on the disposal of its controlling stake following Cell C’s listing, partially offset by an R841-million gain on the remeasurement of its previously held interest when it acquired control in September 2025.
Strip out the Cell C noise, however, and Blu Label presents a markedly different set of numbers. Excluding Cell C and Comm Equipment Company (CEC) – along with extraneous items relating to Cell C’s pre-listing restructuring and a goodwill impairment – the group said it would have reported revenue of R5-billion, gross income of R1.35-billion, Ebitda of R535-million and net profit after tax of R389-million. Core headline earnings on that basis would have been R398-million, or 44.19c/share.
The company said these metrics “provide a more meaningful indication of Blu’s underlying operational performance and earnings base going forward”.
Blu Label also highlighted that the imputed gross revenue generated from Pin-less top-ups, prepaid electricity, ticketing and universal vouchers – where only the gross profit is recognised as revenue – amounted to R50.9-billion, underscoring the scale of its distribution platform.
Corporate gymnastics
The reporting period captured a whirlwind of corporate activity around Cell C. Blu Label subsidiary The Prepaid Company obtained Competition Commission approval on 3 September 2025 to acquire control of Cell C, making it a subsidiary from that date. Just weeks later, at the end of November 2025, TPC disposed of a 50.45% shareholding when Cell C listed on the JSE, and sold CEC to Cell C in the process.
The result is that Blu Label relinquished control while retaining a 49.47% interest, with Cell C now equity accounted as an associate. The group’s half-year results consequently include Cell C’s equity-accounted contribution for the three months to end-August 2025, its consolidated results for the three months to end-November 2025, and CEC’s financials for the full six-month period.
Read: MVNO business shines in Cell C’s first post-listing results
Even on the more flattering “underlying” basis, the numbers show a business that is not yet firing on all cylinders. Core headline earnings per share fell between 10% and 14% compared to the prior period, from 47.2c to a range of 40.64c to 42.53c. Headline earnings per share, which strip out the Cell C disposal loss but include other items, declined between 14% and 18%.
Read: Cell C cleans up its balance sheet but faces tough trading reality
The full results, due on 25 February 2026, should provide more colour on what is driving the underlying earnings decline – and whether Blu Label’s post-Cell C identity as a distribution and fintech platform can deliver the growth the market will be looking for. – © 2026 NewsCentral Media
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