JSE-listed Blu Label Unlimited Group Limited on Thursday said it expects a more than 100% decline in earnings per share (EPS) and a double-digit slump in headline earnings per share (HEPS) for the six months ended November 30, 2025.

In a trading statement, the company explains that EPS will contract more than 100% from 43.98c in the six months to November 2024 to a loss per share of between 554.65c and 556.44c apiece in the half-year to November 2025.

HEPS are expected to decrease between 14% and 18% from 46.01c in the corresponding half-year to November 2024, to between 37.68c and 39.52c in the current half-year under review.

Core HEPS will decline 10% to 14%, from 47.20c to between 40.64c and 42.53c.

“Included in earnings for the six months ended November 30, 2025, is a net loss of R5.2-billion relating to the group's investment in Cell C, which is added back for headline earnings,” Blu Label said.

The loss comprises R6-billion recognised on the disposal of The Prepaid Company’s (TPC’s) investment in Cell C and Comm Equipment Company (CEC), following Cell C's listing at a market value of R9-billion.

This was partially offset by a gain of R841-million on the remeasurement of the previously held interest when TPC acquired control of Cell C in September 2025.

“Excluding Cell C and CEC’s financial results for the six-month period, all extraneous items relating to the prelisting restructuring of Cell C and a goodwill impairment, Blu Label would have reported revenue of R5-billion, gross income of R1.35-billion, earnings before interest, tax, depreciation and amortisation of R535-million and net profit after tax of R389-million.”

Core headline earnings would have totalled R398-million, equating to core HEPS of 44.19c.

“As only the gross profit earned on PINless top-ups, prepaid electricity, ticketing and universal vouchers are recognised as revenue, the imputed gross revenue generated from these sources amounted to R50.9-billion. These metrics provide a more meaningful indication of Blu Label's underlying operational performance and earnings base going forward,” the company notes in the trading update.

TPC obtained Competition Commission approval on September 3 to acquire control of Cell C, which became a subsidiary from that date.

At the end of November 2025, pursuant to the listing of Cell C, TPC disposed of a 50.45% shareholding and sold CEC to Cell C.

Consequently, Blu Label relinquished control of Cell C while retaining a 49.47% interest, resulting in Cell C being equity accounted as an associate.

“Blu Label's results accordingly include Cell C's equity-accounted contribution for the three months ended August 31, 2025, its consolidated results for the three months ended November 30, 2025, and CEC's financial results for the full six-month period, as the disposal became effective only at the end of November 2025.”

Blu Label Unlimited will publish its financial results for the first half of the year on February 25.