Blu Label records R5 billion loss after Cell C listing – BusinessTech

Blu Label has recorded a massive R5 billion loss for the six months ended 30 November 2025, but the group is optimistic following Cell C’s listing.

During the period, the group was impacted by a series of strategic transactions, most notably the acquisition of control of Cell C, a pre-listing restructuring, and the partial disposal of Cell C, resulting in it becoming a subsidiary again, this time as an associate.

The group said that these transactions introduced a degree of accounting complexity, creating volatility in its underlying performance.

It said that its financial position has been materially simplified following the listing of Cell C, with the complexity associated with the Cell C funding instruments and restructuring-related transactions now unwound.

Nevertheless, its net profit after tax attributable to equity holders of the parent declined by over 1,300% to R5 billion.

The group noted that the results included a net loss of R5.2 billion relating to its investment in Cell C.

The loss comprises 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.

The investment in Cell C, however, is added back in the calculation of headline earnings, which only declined by 16% to a positive R347 million.

Despite the complicated financial results, the group declared an interim dividend of 43.56 cents per share.

It said that the resumption of dividend payments reflects its confidence in its financial position and sustainable earnings outlook.

Normalised earnings

While the above financials are required under IFRS Accounting Standards, the group said that the results are not indicative of its core operational trajectory or earnings capacity.

Thus, it included a normalised financial position, which excluded Cell C’s and CEC’s financials, a goodwill impairment, and all extraneous items associated with the pre-listing restructuring of Cell C.

It said that this approach provides an alternative base from which to evaluate its sustainable earnings profile and ongoing performance.

In this case, the group’s revenue would decline to R5.0 billion, which includes PINless top-ups, prepaid electricity, ticketing and universal vouchers, which would equate to an 11%.

Net profit after tax would stand at R389 million when using Blu Label’s normalised financials. Headline and core headline earnings would stand at R398 million.