JSE-listed Blue Label Telecoms, which will start trading under its new name BLU Label Unlimited from September 3, has reported a “resilient” performance for the financial year ended May 31, with core headline earnings having improved to R4.15-billion, from R679.49-million in the 2024 financial year.

Core headline earnings a share were 461.63c, compared with 76.08c in the prior financial year.

Blue Label points out that net positive extraneous contributions to group earnings for the financial year were all attributable to its investment in Cell C.

These included, among others, a reversal of investment impairment of R1.56-billion relating to the initial impairment of R2.5-billion on Blue Label's investment in Cell C; and positive headline earnings adjustments of R1.59-billion, attributable to the reversal of the group's share of historical impairments recognised by Cell C of R3.14-billion, partially offset by the reversal of the impairment previously recognised on Blue Label's investment in Cell C of R1.56-billion.

The group’s net profit increased to R2.48-billion for the year under review, compared with a net profit of R647.39-million in the prior financial year, while earnings before interest, taxes, depreciation and amortisation increased to R1.6-billion, from R1.23-billion the year before.

Revenue, meanwhile, amounted to R14.1-billion, compared with revenue of R14.6-billion in the 2024 financial year.

Blue Label points out, however, that as only the gross profit earned on PINless top-ups, prepaid electricity, ticketing and universal vouchers is recognised as revenue, on imputing the gross revenue generated from these sources, the effective growth in revenue equated to R6.7-billion, resulting in a total revenue of R96-billion for the year under review, compared with R89.3-billion in the 2024 financial year.

"This year’s results are a testament to the strength of our core businesses and the depth of our relationships across every segment we serve. But more importantly, they set the stage for what comes next.

“The new BLU is a more focused, integrated and agile organisation, designed to capture growth opportunities and deliver sustained value in a fast-changing digital economy," says Blue Label joint CEO Mark Levy.

The group has restructured its operations into seven “clearly defined buckets” of solutions that combine physical and virtual distribution capabilities with a fully integrated digital ecosystem.

The seven “buckets” of solutions are:

-BLU Distribution Solutions, delivering physical and virtual access to digital products and services;

-BLU Platform Solutions, providing a scalable, secure, and adaptable digital backbone powering products, services, payments, transport, the Internet of Things and beyond;

-BLU Energy Solutions, which streamlines municipal revenue collection through prepaid vending, as well as arrears recovery, while advancing scalable solar and battery projects to unlock cash flow and deliver sustainable, risk-free returns;

-BLU Media Solutions, providing platforms and tools to monetise audiences through advertising, content and engagement;

-BLU Data & AI Solutions, which is aimed at turning transaction flows into intelligence, monetisation and strategic decision-making tools;

-BLU Training Solutions, providing skills development and digital upskilling for employability and economic inclusion; and

-BLU Telco Solutions, which includes strategic telecoms investments to leverage group synergies and facilitate enhanced and financial inclusion.

"We’ve listened to our customers, our partners and the market – and we’ve acted decisively.

“The rebrand and structural simplification remove confusion, unite our people under a single identity and unlock the full power of our platforms. We now have a business that’s built for scale, speed and innovation – and that’s incredibly exciting for our future," says joint CEO Brett Levy.

The group states that, with its refreshed brand, integrated structure and expanded capabilities, it enters the new financial year with strong momentum.

Looking ahead, the business will focus on accelerating growth in core segments through deeper penetration of the group’s distribution and platform solutions; leveraging its data and AI capabilities to unlock new revenue streams and strengthen customer engagement; and driving innovation in energy solutions to address South Africa’s electricity challenges while delivering sustainable returns.

Blue Label will also work to expand high-value partnerships in telecoms and payments, ensuring increased product stickiness and cross-sell opportunities; and monetising strategic assets, including Cell C, at the optimal time to enhance shareholder value and fund future expansion.