JSE-listed Blu Label Unlimited Group on Wednesday said it has emerged from the six months ended November 30, 2025, with a simplified structure, stronger capital base and clearer strategic direction, as well as a more transparent balance sheet and enhanced financial flexibility, following the successful restructuring and listing of Cell C.

According to the group, normalised earnings before interest, tax, depreciation and amortisation (Ebitda) for the first half of the year under review was R535-million, with headline and core headline earnings of R398-million and core headline earnings of 44.19c a share.

Earnings per share (EPS) was reported, on a normalised basis, at 43.22c, and headline earnings per share (HEPS) were 44.17c for the six months to November 30, 2025.

The group further reported a gross income of R1.35-billion and net profit after tax of R389-million, while revenue reached R5-billion. On inclusion of the gross amount generated on ‘PINless top-ups’, prepaid electricity, ticketing and universal vouchers, the effective increase equated to 11% from R45.9-billion to R50.9-billion.

Blu Label presented its results for the half-year on a normalised basis excluding Cell C's and CEC's financial results for the six-month period, a goodwill impairment and all extraneous items associated with the pre-listing restructuring of Cell C, to provide a clearer understanding of the group's core performance.

“Although the related accounting treatments are required under IFRS Accounting Standards, they are not indicative of Blu Label's core operational trajectory or earnings capacity,” the company said in its Sens update on its financial results on Wednesday.

On a reported basis, including 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 results for the full six-month period, the Group’s Ebitda plunged 730% into negative territory at R4.1-billion.

On a reported basis, revenue increased 19% to R8.6-billion.

The company’s reported headline earnings and core headline earnings declined 16% and 12% to R347.5-million and R374.4-million respectively during the six months under review.

EPS, on a normalised basis, fell from earnings of 43.98c in the six months to November 30, 2024, to a loss of 555.56c a share, while HEPS and core headline earnings per share declined 16% and 12% to 38.6c and 41,59c a share respectively.

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.

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

However, the successful restructuring and listing of Cell C remains a defining milestone for the company, repositioning the business as a leaner, asset-light operator with a strengthened capital framework and enhanced cost base.

The transaction crystallised value for shareholders, simplified the group structure and strengthened Blu’s balance sheet, while allowing Cell C to operate independently as a listed entity with a clear capital structure and growth mandate.

“The successful Cell C IPO represents the culmination of a long and deliberate journey. It unlocks value, removes complexity from the group and gives investors a far clearer view of Blu Label Unlimited as a standalone, high-quality digital enablement platform. Importantly, it also gives us greater strategic and financial flexibility as we execute the next phase of growth,” said Blu Label Unlimited joint-CEO Brett Levy.

With Cell C now standing on its own, Blu is sharper, simpler and better positioned to scale, added Blu Label Unlimited joint-CEO Mark Levy.

“Over the past six months, we have moved decisively from restructuring to execution, focusing capital and management attention on businesses that are cash-generative today and capable of delivering meaningful growth tomorrow, including making significant inroads through BluEnergy into improving energy accessibility throughout the country.”

Blu Label Unlimited declared an interim dividend of 43.56c a share for the half-year under review, in what the company said reflected confidence in its financial position and sustainable earnings outlook.

Looking ahead, Blu Label enters the second half of the financial year with strong momentum and a significantly simplified operating model.

The company’s core prepaid distribution and payments operations remain resilient, with management focused on protecting the group's market-leading position, deepening client relationships and enhancing and executing on revenue assurance capabilities, including municipal payment enablement at scale.

The group’s priorities include scaling subsidiary BluEnergy Solutions through project execution and trading activity, deepening monetisation across distribution and platform businesses, leveraging data and AI capabilities to unlock new revenue streams and maintaining disciplined capital allocation following the Cell C IPO.

BluEnergy Solutions emerged as a key strategic priority and, in conjunction with Cigicell, continues to scale its municipal prepaid electricity vending and revenue-enhancement platforms, while advancing a growing commercial and industrial energy pipeline.

During the six months under review, the business secured early power purchase agreements and advanced a growing project pipeline.

“BluEnergy continues to build a scalable municipal and commercial-industrial energy platform, combining wheeled power and embedded solar generation with a differentiated offtake and revenue-assurance model.”

BluEnergy also secured a multiyear energy trading licence from the National Energy Regulator of South Africa , enabling it to participate directly in the evolving energy market by aggregating supply and demand, facilitating offtake arrangements and delivering tailored energy solutions.

While currently a modest contributor to group earnings, BluEnergy is expected to become a meaningful medium-term earnings driver as projects move into construction and first revenues are realised.

“Blu today is a very different business to what it was even two years ago. We have clarity of purpose, a simplified structure and a portfolio of platforms that are relevant, scalable and defensible. Our focus now is on execution, converting capability into earnings growth and delivering sustained value for shareholders,” Brett Levy concluded.