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Blu Label Unlimited, led by co chief executive Mark Levy, has reported a sharp swing into loss for the first half of its 2026 financial year, as restructuring costs tied to the Cell C spin off weighed heavily on earnings.
The Johannesburg listed technology group, which owns a stake in Cell C and fully controls The Prepaid Company, released a trading statement covering the six months ended 30 November 2025.
The company said earnings per share are expected to fall by more than 100 percent, translating into a loss per share of between $0.345 and $0.344.
Headline earnings per share are projected to decline by between 14 percent and 18 percent, landing between $0.0234 and $0.0245.
The weak reported figures come after Blu Label completed major restructuring steps in 2025, including unbundling and separately listing Cell C and rebranding from Blue Label Telecoms to Blu Label Unlimited.
Management said the headline loss reflects once off items linked to the Cell C transaction and related restructuring.
Included in the interim results is a net loss of $323 million on tied to Blu Label investment in Cell C. The loss primarily stems from a $372.42 million charge recognised on the disposal of The Prepaid Company investment in Cell C and Comm Equipment Company following Cell C listing at a market value of $558.37 million.
This was partially offset by a gain of $52 million on the remeasurement of the group previously held interest when it acquired control of Cell C in September 2025.
Excluding Cell C and Comm Equipment Company financial results, as well as pre listing restructuring costs and a goodwill impairment, Blu Label said the core business remained profitable.
On that adjusted basis, the group would have reported revenue of $310.21 million, gross income of $83.76 million, EBITDA of $33.19 million and net profit after tax of $24.14 million.
Core headline earnings would have totalled $24.70 million, equivalent to $0.027 per share.
The company noted that only gross profit earned on PINless top ups, prepaid electricity, ticketing and universal vouchers is recognised as revenue. When gross flows from these activities are considered, the implied revenue generated amounted to $3.16 billion.
Executives said these adjusted metrics provide a clearer indication of Blu Label underlying operational strength following the strategic overhaul.
The group is scheduled to release its full interim results on 25 February 2026, when investors will get a deeper look at how the Cell C spin off reshaped its financial position.
