Cell C Listing Blamed for Blu Label’s R5 Billion Net Loss

Blu Label experienced a net loss of nearly R5 billion for the fiscal year ending in May 2026, primarily connected to the restructuring of Cell C and its public listing. Nonetheless, its core operations in the distribution of prepaid airtime, electricity, and water vouchers continued to generate cash.

With Cell C now listed independently on the JSE, the company has shifted its focus back to its main activities, which encompass the distribution of airtime vouchers, the management of Ticketpro (a ticketing platform), and its energy business, instead of dealing with the operational challenges of Cell C.

Blu Label share price

Blu Label reported revenues of R13 billion, representing a 7% decrease from the previous year. The company posted headline earnings of R756,088, reflecting a net loss of R5.6 billion, with R5.19 billion resulting from the restructuring of Cell C.

It obtained majority control of Cell C in September 2025 and subsequently listed it on the JSE in November 2025.

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Cell C results: Does the value proposition hold?

The company stated that this transaction “minimized the group’s risk exposure, simplified operations, and improved earnings visibility, while Blu Label’s retained 49.53% shareholding maintains strategic options.”

Blu Label indicated that the net loss at year-end was attributed to IFRS reporting standards. “These transactions, while strategically significant, introduce a level of accounting complexity that results in volatility in the group’s underlying performance.”

Cell C share price

In addition to the losses associated with Cell C, Blu Label incurred further losses, including a R201 million goodwill impairment, R116 million in impairments on intangible and fixed assets, and R134 million in losses on disposals.

A gross dividend of 10 cents per share has been declared, payable from reserves. When combined with the interim dividend of 43.56 cents, this results in total dividends for the fiscal year ending in May 2026 amounting to 53.56 cents per ordinary share.

BluEnergy Solutions, a subsidiary of Blu Label, was granted a multi-year energy trading license by the National Energy Regulator of South Africa in February, allowing it to engage in the reform of South Africa’s power sector.

Read: Blu Label secures energy trading license