Blu Label Unlimited Group has declared its first interim dividend in eight years, signalling it is finally putting the long and costly Cell C chapter behind it.
The group, formerly known as Blue Label Telecoms, declared an interim dividend of 43.56c/share for the six months to end-November 2025, payable on 23 March 2026. The board said the payout reflects confidence in the group’s financial position, cash generation and earnings outlook.
“Resuming dividends is a very big step for us,” co-CEO Brett Levy told journalists on Wednesday. “We have had a rough many years with Cell C… We stuck with it. We were very fortunate to get in Jorge Mendes (Cell C’s CEO) and the fantastic team behind him.”
It is a notable milestone for a company that has spent the better part of a decade pouring capital into Cell C. The resumption of distributions comes after Blu Label raised R2.7-billion from selling a 30% stake in Cell C ahead of its listing on 27 November 2025, a transaction that valued the mobile operator at about R9-billion.
Cash on hand surged from R822-million to R2.69-billion as a result.
The headline figures are still dominated by Cell C-related accounting noise. Blu Label reported a net loss attributable to shareholders of R5-billion for the period, driven by a R6-billion loss recognised on the disposal of its controlling stake in Cell C, partially offset by an R841-million gain on the remeasurement of its previously held interest.
Normalised
Basic earnings per share swung to a loss of 555.56c, compared to positive earnings of 43.98c in the prior period. Headline earnings fell 16% to R348-million, while core headline earnings declined 12% to R374-million.
On a reported basis, revenue rose 19% to R8.6-billion, but Ebitda swung to a negative R4.1-billion from a positive R653 million, reflecting the scale of the Cell C-related charges flowing through the income statement.
Read: Cell C cleans up its balance sheet but faces tough trading reality
Stripping out Cell C, Comm Equipment Company and all restructuring-related items, Blu Label presented a normalised set of numbers: revenue of R5-billion, gross income of R1.35-billion, Ebitda of R535-million and net profit after tax of R389 million. Core headline earnings on that basis were R398-million, or 44.19c/share.
Imputed gross revenue – which captures the full value of Pin-less top-ups, prepaid electricity, ticketing and universal vouchers, where only the margin is recognised as revenue – grew 11% to R50.9-billion, from R45.9-billion.
Within that, gross revenue from universal vouchers, driven by BluVoucher sales through financial institution channels, surged 23% from R7.3-billion to R9-billion, making it the standout growth contributor.
Pin-less top-up revenue climbed R1.8-billion to R12.4-billion. Electricity revenue generated on behalf of utilities rose 11% to R24.3-billion – but the commission Blu Label earns on those sales actually fell 10%, from R161-million to R144-million, as margin compression offset volume gains.
Ticketing revenue declined 14%, driven by weaker sales of music festivals and concerts, although commuter bus channel revenue grew.
While the Cell C listing has de-risked Blu Label’s exposure, the full results contain a going concern note for the mobile operator. Cell C had current liabilities exceeding current assets by R2.34-billion at 30 November 2025. The results disclose that Cell C encountered “liquidity constraints predominantly attributable to the seasonal nature of working capital requirements and elevated cash outflows related to Cell C’s technological modernisation drive, capacity rebasing and capex investment payments”.
Cell C’s directors said they are satisfied the operator can meet its obligations, citing detailed cash flow forecasts, cost optimisation initiatives and the deferral of selected non-essential capital projects.
Operational momentum
Blu Label retains a 49.47% shareholding in Cell C, with a total economic interest of 65.42%. Of that, a 15.95% stake sold to BEE partner Sisonke Growth Partners using a vendor-funding arrangement, through The Prepaid Company, remains classified as a held-for-sale asset worth R1.4-billion. The group said it has commenced a formal disposal or refinancing process for this stake, with proceeds earmarked for debt reduction. This is expected to happen in the next 12 months.
Management said the group enters the second half with strong operational momentum. Strategic investments in data analytics, AI and digital platforms are described as transitioning from development to commercial execution, while BluEnergy – which recently secured a multi-year energy trading licence from energy regulator Nersa – is progressing towards its first contracted revenues.
Read: Blu Label lands electricity trading licence from Nersa
The group also disclosed it is in discussions to dispose of an unnamed non-core business within the next six months, as part of its ongoing portfolio optimisation. – © 2026 NewsCentral Media
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