R5.2-billion bloody nose for Cell C owner
Blu Label Unlimited, formerly Blue Label Telecoms, has released a trading statement for the six months ended 30 November 2025, revealing a R5.2 billion loss relating to its investment in Cell C.
Excluding the impact of its investment in Cell C, the group would have reported revenue of R5 billion and gross income of R1.35 billion.
However, TPC’s disposal of its Cell C investment at the end of November 2025 significantly affected Blu Label’s reporting.
“TPC disposed of a 50.45% shareholding and sold CEC to Cell C,” it said. “Consequently, Blu Label relinquished control of Cell C while retaining a 49.47% interest.”
According to the Blu Label Group, this resulted in Cell C being equity accounted as an associate from that date.
“Included in earnings for the six months ended 30 November 2025 is a net loss of R5.2 billion relating to the Group’s investment in Cell C, which is added back to headline earnings,” Blu Label said.
It explained that the loss comprises R6 billion on the disposal of The Prepaid Company’s (TPC) 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.
However, excluding the impact of Cell C, Blu Label’s loss turns into a net profit after tax of R389 million.
“Blu would have reported revenue of R5 billion, gross income of R1.35 billion, EBITDA of R545 million, and net profit after tax of R389 million,” it said.
“Core headline earnings would have totalled R398 million, equating to core headline earnings per share of 44.19 cents.”
Blu Label explained that only the gross profit earned on PINless top-ups, prepaid electricity, ticketing, and universal vouchers is recognised as revenue.
As a result, the imputed gross revenue generated from these sources amounted to R50.9 billion in the six months ended 30 November 2025.
“These metrics provide a more meaningful indication of BLU’s underlying operational performance and
earnings base going forward,” it said.
The table below summarises key figures from Blu Label Unlimited’s trading statement for the six months ended 30 November 2025. Earnings figures are given in cents per share.
| Measure | November 2024 | Range: November 2025 | Change |
|---|---|---|---|
| Earnings per share | 43.98 | (556.44) to (554.68) | >(100%) |
| Headline earnings per share | 46.01 | 37.68 to 39.52 | (18%) to (14%) |
| Core headline earnings per share | 47.20 | 40.64 to 42.53 | (14%) to (10%) |
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