One company dominates prepaid electricity and airtime in South Africa with R108 billion in annual turnover
Blu Label Unlimited dominates prepaid electricity and airtime in South Africa, with an annual turnover of R108 billion.
The company handles 50% to 55% of all prepaid telecommunications distribution and about 65% of all prepaid electricity distribution in South Africa.
Blu Label Unlimited co-CEO Brett Levy shared this information during an EasyEquities webinar, which focused on Blu Label Unlimited’s Interim Results.
A standout feature of the reporting period was the successful restructuring and subsequent listing of Cell C.
Following a multi-year process in which Blu Label played a pivotal role, Cell C has been repositioned as a leaner, asset-light, wholesale-enabled operator.
This restructuring and listing of Cell C included a series of strategic transactions which impacted Blu Label’s interim results.
It therefore makes sense to look at Blu Label’s normalised financial information to better understand its performance.
On a normalised basis for the six months ended 30 November 2025, Blu Label generated revenue of R5.0 billion.
It achieved a gross income of R1.353 billion, and Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of R535 million.
Its net profit after tax for the six months was R389 million, and its headline and core headline earnings were R398 million.
The company announced an interim dividend of 43.56 cents per share, which was music to shareholders’ ears.
Blu Label Unlimited dominates prepaid electricity and airtime in South Africa
Levy said that Blu Label Unlimited is the same for the prepaid industry in South Africa as what SAB is for the beer industry.
He explained that Blu Label consists of four elements, each with its own strengths:
- Cell C — It is a fully separate, listed entity within the Blu Label stable, with an arms-length trading agreement.
- Core Blu Label — Prepaid electricity and airtime distribution, which dominates the market.
- BluEnergy — This is the company’s unicorn, and the company has positioned itself in the energy market for years.
- Peripheral services — These services sit on the periphery and plug into the company’s core activities.
Levy explained that Blu Label’s core element, prepaid vouchers and distribution, is where it dominates.
“We do between 50% and 55% of all prepaid distribution in South Africa’s telecommunications market,” he said.
“We also do around 65% of all prepaid electricity distribution in the country, and service 35 million customers monthly.”
These and other products and services helped Blu Label Unlimited to reach R108 billion in revenue over the last year.
Levy said that these numbers show that they do not need more revenue, customers or merchants. However, the company remains hungry.
“Every morning, we wake up and work to grow our revenue, merchant base, and customer base,” he said.
He said their current focus is on increasing the margin they derive from their R108 billion in revenue and 35 million customers.
“An increase of 0.4% to 0.5% on our gross profit margins will double the profit of Blue Label Unlimited,” he explained.
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