Blu Label reports R5bn net loss due to Cell C listing

Blu Label reported an almost R5 billion net loss for the year ended May 2026, linked to the Cell C restructuring and public listing. Still, its core business in prepaid airtime, electricity, and water vouchers remained cash-generative.

With Cell C listed separately on the JSE, the company says it is now focused on its core, which includes airtime voucher distribution, the operation of Ticketpro, a ticketing website, and its energy business, rather than addressing Cell C’s operational issues.

Blu Label share price 

Blu Label earned revenue of R13 billion, down 7% from the year before. Its headline earnings of R756 088 included a net loss of R5.6 billion, of which R5.19 billion was attributable to the Cell C restructuring.

It took majority control of Cell C in September 2025 and listed it on the JSE in November 2025.

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It said this transaction “derisked the group’s exposure, reduced complexity, and enhanced earnings visibility, while Blu Label’s retained shareholding of 49.53% preserves strategic optionality”.

Blu Label said the year-end net loss was due to IFRS reporting requirements. “These transactions, while strategically important, introduce a degree of accounting complexity that creates volatility in the underlying performance of the group.”

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In addition to the Cell C loss, Blu Label recorded additional losses, including a R201 million goodwill impairment, R116 million in intangible and fixed‑asset impairments, and R134 million in losses on disposals.

A gross dividend of 10 cents per share was issued, payable from reserves. Together with the interim dividend of 43.56 cents, this brings the total dividends for the year ended May 2026 to 53.56 cents per ordinary share.

BluEnergy Solutions, a Blu Label subsidiary, secured a multi-year energy trading licence from the National Energy Regulator of South Africa in February, enabling it to participate in South Africa’s power sector reform.

Read: Blu Label scores energy trading licence

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