Blu Label Limitless Group will submit an enormous primary earnings loss for the six months to end-November 2025, pushed virtually fully by a R5.2-billion accounting hit linked to its disposal of management in Cell C – however the firm is eager to attract consideration to what it says is a much more significant image of its underlying enterprise.
The group, previously often known as Blue Label Telecoms, reported that primary earnings per share swung to a lack of between 554.68c and 556.44c/share, in comparison with constructive earnings of 43.98c/share within the prior interval. The collapse was attributable to a internet lack of R5.2-billion on its Cell C funding, comprising a R6-billion loss recognised on the disposal of its controlling stake following Cell C’s itemizing, partially offset by an R841-million achieve on the remeasurement of its beforehand held curiosity when it acquired management in September 2025.
Strip out the Cell C noise, nevertheless, and Blu Label presents a markedly totally different set of numbers. Excluding Cell C and Comm Gear Firm (CEC) – together with extraneous objects regarding Cell C’s pre-listing restructuring and a goodwill impairment – the group stated it might have reported income of R5-billion, gross earnings of R1.35-billion, Ebitda of R535-million and internet revenue after tax of R389-million. Core headline earnings on that foundation would have been R398-million, or 44.19c/share.
The corporate stated these metrics “present a extra significant indication of Blu’s underlying operational efficiency and earnings base going ahead”.
Blu Label additionally highlighted that the imputed gross income generated from Pin-less top-ups, pay as you go electrical energy, ticketing and common vouchers – the place solely the gross revenue is recognised as income – amounted to R50.9-billion, underscoring the dimensions of its distribution platform.
Company gymnastics
The reporting interval captured a whirlwind of company exercise round Cell C. Blu Label subsidiary The Pay as you go Firm obtained Competitors Fee approval on 3 September 2025 to amass management of Cell C, making it a subsidiary from that date. Simply weeks later, on the finish of November 2025, TPC disposed of a 50.45% shareholding when Cell C listed on the JSE, and offered CEC to Cell C within the course of.
The result’s that Blu Label relinquished management whereas retaining a 49.47% curiosity, with Cell C now fairness accounted as an affiliate. The group’s half-year outcomes consequently embrace Cell C’s equity-accounted contribution for the three months to end-August 2025, its consolidated outcomes for the three months to end-November 2025, and CEC’s financials for the total six-month interval.
Learn: MVNO enterprise shines in Cell C’s first post-listing outcomes
Even on the extra flattering “underlying” foundation, the numbers present a enterprise that isn’t but firing on all cylinders. Core headline earnings per share fell between 10% and 14% in comparison with the prior interval, from 47.2c to a variety of 40.64c to 42.53c. Headline earnings per share, which strip out the Cell C disposal loss however embrace different objects, declined between 14% and 18%.
Learn: Cell C cleans up its stability sheet however faces robust buying and selling actuality
The complete outcomes, due on 25 February 2026, ought to present extra color on what’s driving the underlying earnings decline – and whether or not Blu Label’s post-Cell C id as a distribution and fintech platform can ship the expansion the market might be on the lookout for. – © 2026 NewsCentral Media
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