Telecommunications

Cell C listing tanks Blu Label

Staff Writer

 ·14 Aug 2026

Blu Label Unlimited has notified shareholders that its expected earnings for the year ended 31 May 2026 will be 80% lower than last year, as it continues to count the cost of listing Cell C.

In a trading statement for the period, the group noted that it expects to report a loss per share of between -543 and -537 cents, down from earnings per share of 277 cents the year prior.

The group’s headline earnings are expected to be between 81% and 83% lower, at 79–88 cents, down from 456 cents per share the year before.

According to the group, the imminent losses are in line with the guidance given to shareholders when it reported its interim results earlier this year.

At the time, the group advised that the non-operational accounting effects arising from the Cell C restructuring transactions and the outcome of the listing would continue to affect reported earnings for the full financial year.

“Consistent with that guidance, the group’s reported results for both the Reporting Period and the comparative period were materially impacted by the Cell C restructuring transactions, the outcome of the listing of Cell C and the resulting accounting consequences under IFRS Accounting Standards,” it said.

These factors resulted in a material decline in reported EPS, HEPS and Core HEPS for the period.

In its interim results for the six months ended November 2025, Blu Label recorded a massive R5 billion loss.

The loss comprised R6 billion recognised on the disposal of The Prepaid Company’s Investment in Cell C and Comm Equipment Company (CEC) following Cell C’s listing at a market value of R9 billion.

This was partially offset by a gain of R841 million on the remeasurement of the previously held interest upon TPC’s acquisition of control of Cell C in September 2025.

For the full-year period, Blu Label said its finances are in the black when excluding Cell C’s and CEC’s financial results, as well as all extraneous items relating to the restructuring transactions and the listing of Cell C, and losses on disposals and impairments.

Excluding all of that, Blu Label would have reported revenue of R9.4 billion, gross income of R2.56 billion, EBITDA of R923 million and net profit after tax of R677 million, it said.

Core headline earnings would have totalled R681 million, equating to Core HEPS of 75.33 cents. Notably, this would still be a massive 80%-82% reduction from the core HEPS of 462 cents in the previous period.

Nevertheless, Blu Label insists that the core metrics “provide a more meaningful indication of Blu’s underlying operational performance and earnings base going forward.”

The group’s financial results for the reporting period will be published on SENS on 26 August 2026.