Blu Label has recorded a loss of close to R5 billion following the listing of Cell C on the Johannesburg Stock Exchange (JSE) in 2025.<\/p>\n\n\n\n
In its results for the year ended 31 May 2026, the group said its performance was characterised by disciplined execution in a challenging consumer environment and progress in simplifying its operations. <\/p>\n\n\n\n
The group said that its core platforms were cash-generated, supported by disciplined cost management, improved liquidity and a sharper focus on earnings quality and returns on invested capital.<\/p>\n\n\n\n
It said that the main milestone was the restructuring and subsequent listing of Cell C Holdings Limited. <\/p>\n\n\n\n
The group said that the IPO de-risked its exposure, reduced complexity, and enhanced earnings visibility following an incredibly turbulent decade. <\/p>\n\n\n\n
The group still holds a 49.53% stake in Cell C, which Blu Label noted gives it some strategic optionality.<\/p>\n\n\n\n
The group said that IPO also introduces transparent market valuation, strengthened governance and independent access to capital.<\/p>\n\n\n\n
However, the group admitted that its reported results for the year were severely affected by IFRS Accounting Standards arising from the restructuring transactions and the listing.<\/p>\n\n\n\n
Blu Label stressed that these effects are non-operational and do not reflect the group’s underlying trading performance.<\/p>\n\n\n\n
“These transactions, while strategically important, introduce a degree of accounting complexity that created volatility in the underlying performance of the group,” it said. <\/p>\n\n\n\n
“Although the related accounting treatments are required under IFRS Accounting Standards, they are not indicative of Blu Label’s core operational trajectory or earnings capacity.” <\/p>\n\n\n\n
Looking at the financials, the group’s revenue declined by 7% to R13 billion, while its EBITDA fell by 397% to a negative R4.8 billion.<\/p>\n\n\n\n
The group recorded a net loss of R4.88 billion, which was a 297% decline from the R2.5 billion it recorded in profit in FY25. <\/p>\n\n\n\n
The group’s headline earnings also fell by 82% from R4.1 billion in FY25, but remained positive at R756 million over the year.<\/p>\n\n\n\n The group also included normalised financial information that excluded the financial results of Cell C and Comm Equipment Company (CEC), which was also affected by the restructuring.<\/p>\n\n\n\n Other elements excluded from normalised earnings included all extraneous items arising from the restructuring transactions and the listing of Cell C, as well as losses on disposal and impairments.<\/p>\n\n\n\n With its normalised earnings, the group’s revenue rose 7% to R99.9 billion due to the inclusion of the gross amount generated on ‘PINless top-ups’, prepaid electricity, ticketing and universal vouchers.<\/p>\n\n\n\n Its normalised net profit after tax also stood at R677 million, while its headline and core headline earnings stood at R681 million. <\/p>\n\n\n\n The group still declared a final dividend of 10 cents per share, taking its total dividend for the year to 53.56 cents per share. The group has also announced a share repurchase programme. <\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" Blu Label has recorded a loss of close to R5 billion following the IPO of Cell C in late 2025. <\/p>\n","protected":false},"author":95,"featured_media":811935,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"failed","_sma_x_autopost_error":"Instagram publishing failed: Instagram returned HTTP 400: Media ID is not available","_sma_x_post_id":"2092517416026710430","_sma_facebook_post_id":"191437357620492_2187006638786402","_sma_instagram_post_id":"","_sma_x_attempts":1,"footnotes":""},"categories":[21],"tags":[23759,42],"class_list":["post-872108","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecommunications","tag-blu-label","tag-cell-c"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/872108","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=872108"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/872108\/revisions"}],"predecessor-version":[{"id":872121,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/872108\/revisions\/872121"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/811935"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=872108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=872108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=872108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Financial Results<\/strong><\/td> May 2026 (R’000)<\/strong><\/td> May 2025 (R’000)<\/strong><\/td> Growth (R’000)<\/strong><\/td> Growth (%)<\/strong><\/td><\/tr><\/thead> Revenue<\/td> 13,052,808<\/td> 14,050,177<\/td> (997,369)<\/td> (7%)<\/td><\/tr> EBITDA<\/td> (4,765,413)<\/td> 1,604,090<\/td> (6,369,503)<\/td> (397%)<\/td><\/tr> Net (loss)\/profit after tax attributable to equity holders of the parent<\/td> (4,882,394)<\/td> 2,484,243<\/td> (7,366,637)<\/td> (297%)<\/td><\/tr> Headline earnings adjustments<\/td> 5,638,482<\/td> 1,612,163<\/td> 4,026,319<\/td> 250%<\/td><\/tr> Headline earnings<\/td> 756,088<\/td> 4,096,406<\/td> (3,340,318)<\/td> (82%)<\/td><\/tr> Core headline earnings<\/td> 797,862<\/td> 4,147,296<\/td> (3,349,434)<\/td> (81%)<\/td><\/tr> Share performance (cents)<\/strong><\/td> <\/td> <\/td> <\/td> <\/td><\/tr> Earnings per share<\/td> (539.73)<\/td> 276.52<\/td> (816.25)<\/td> (295%)<\/td><\/tr> Headline earnings per share<\/td> 83.58<\/td> 455.96<\/td> (372.38)<\/td> (82%)<\/td><\/tr> Core headline earnings per share<\/td> 88.20<\/td> 461.63<\/td> (373.43)<\/td> (81%)<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n Signs of life<\/h2>\n\n\n\n
Normalised Financial Results<\/strong><\/td> R’000<\/strong><\/td><\/tr><\/thead> Revenue<\/td> 9,435,336<\/td><\/tr> Gross income<\/td> 2,555,281<\/td><\/tr> EBITDA<\/td> 922,523<\/td><\/tr> Net profit after tax attributable to equity holders of the parent<\/td> 676,894<\/td><\/tr> Headline earnings<\/td> 681,067<\/td><\/tr> Core headline earnings<\/td> 681,461<\/td><\/tr> Share performance:<\/strong><\/td> –<\/td><\/tr> Earnings per share (cents)<\/td> 74.83<\/td><\/tr> Headline earnings per share (cents)<\/td> 75.29<\/td><\/tr> Core headline earnings per share (cents)<\/td> 75.33<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
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