Blu Label Unlimited reported a normalized core headline profit of R681 million for the year ended May 31, 2026, as revenue grew 7% to R99.9 billion despite a R5.6 billion impairment linked to its Cell C investment.
The group’s reported net loss widened to R4.9 billion, primarily reflecting the Cell C write-down, while core headline earnings per share stood at 75.33 cents. Total dividends amounted to 53.56 cents per share, including a final dividend of 10 cents. Blu Label’s share price closed at $804 on Tuesday, down 3.37% from the prior session and well below its 52-week high of $1,618.
Normalized revenue reached R9.4 billion, while effective revenue—including gross amounts from pinless top-ups, prepaid electricity, ticketing and universal vouchers—rose to R99.9 billion, up 7% year-over-year. Gross income totaled R2.555 billion, with EBITDA at R923 million. Intangible asset additions declined to R474 million in FY2026 and are projected to fall to around R100 million in FY2027.
The group outlined a staged reduction in its Cell C shareholding, targeting a 25%–30% stake over time. Cell C reported standalone revenue of R12.6 billion and EBITDA of R5.5 billion, excluding one-off items, with 8.9 million subscribers and 47% year-over-year data traffic growth. Free cash flow stood at R1.1 billion.
Blu Label’s business lines showed divergent trends. Pinless airtime top-ups surged 15% to R25.2 billion, while traditional prepaid airtime and data revenue fell 29% to R6.1 billion. Gross electricity revenue grew 4% to R46.2 billion, though electricity commissions declined 13% to R279 million. Universal voucher revenue jumped 22% to R18.7 billion, and handset, tablet and device sales more than doubled to R975 million following the Robtronics acquisition.
The company highlighted progress in its municipal revenue assurance and smart meter initiatives through subsidiary Cigicell. Over 50,000 smart meters have been deployed, contributing to approximately a 10% revenue improvement after NERSA tariff adjustments. Cash collections exceeded R450 million in the past financial year, with projects in the City of Tshwane and City of Ekurhuleni identifying potential revenue leakage improvements of R380 million and R80 million, respectively.
Blu Label also advanced its renewable energy pipeline under BluEnergy, with a total portfolio capacity of 180 megawatts across seven projects. Phase 1 includes 28 megawatts of rooftop projects under contracted power purchase agreements, while Phase 2 comprises 82 megawatts of ground-mount projects in execution. Phase 3, at 70 megawatts, remains in feasibility stages.
Management emphasized disciplined execution amid a challenging consumer environment. The CFO noted that the restructuring and listing of Cell C de-risked exposure and improved earnings visibility, while the CEO cited a cleaner balance sheet and continued cash generation from core platforms.
