Blu Label Telecoms has reported a R5 billion loss for the six months ended 30 November 2025, as a series of transactions linked to Cell C’s listing reshaped its balance sheet and earnings profile. The group’s results were heavily affected by its acquisition of control of Cell C, a pre-listing restructuring and the subsequent partial disposal that resulted in Cell C being accounted for as an associate rather than a subsidiary.
The headline figure reflects a net loss of R5.2 billion related to its investment in Cell C. This includes a R6 billion loss recognised on the disposal of The Prepaid Company’s investment in Cell C and Comm Equipment Company following Cell C’s listing at a market capitalisation of R9 billion. The impact was partly offset by an R841 million gain on the remeasurement of Blu Label’s previously held interest when control was acquired in September 2025.
Revenue increased 19% to R8.64 billion, but EBITDA swung to a loss of R4.1 billion from a R653 million profit a year earlier. Net profit attributable to shareholders declined by more than 1,300% to a loss of R5.0 billion. Earnings per share fell to a loss of 555.56 cents, compared with positive earnings of 43.98 cents in the prior period.
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The group said the IFRS-compliant results do not reflect its core operational trajectory. Excluding Cell C and restructuring-related items, normalised revenue would have been R5.0 billion, with net profit of R389 million and headline earnings of R398 million. Headline earnings under statutory reporting declined 16% to R347 million.
Despite the accounting loss, Blu Label declared an interim dividend of 43.56 cents per share, signalling confidence in its underlying earnings capacity.
The telecoms operator underwent significant funding and capital adjustments ahead of its listing, aimed at stabilising its balance sheet. According to the JSE, Cell C’s debut followed a multi-year turnaround process intended to restore investor confidence in South Africa’s competitive mobile market, where operators face pressure from price competition, regulatory reforms and high infrastructure costs.