JSE-listed Blu Label Unlimited Group on Wednesday said that its reported results for the year ended May 31, 2026, were materially affected by the impact of IFRS(R) Accounting Standards arising from the culmination of the multi-year restructuring and separate listing of Cell C, as well as the unbundling of Comm Equipment Company (CEC).

However, Blu Label joint CEO Brett Levy assures that the group has emerged with a simplified structure and a sharpened focus on its cash-generative digital platforms, which remain resilient.

Cell C’s listing in November 2025 and the partial disposal of Blu Label’s shareholding transitioned the mobile operator from a subsidiary to an associate, and removed much of the historic complexity associated with Blu Label’s funding instruments and restructuring-related exposures.

“This was a transformational year for Blu Label. We completed the work required to place Cell C on an independent footing and, in doing so, materially simplified our own balance sheet and investment case. The group can now direct its full attention towards the platforms where we have scale, proven capability and clear opportunities to generate cash and compound value,” said Levy, along with Blu Label joint CEO Mark Levy.

During the year under review, Blu Label, to provide a clearer view of the group's core performance, presented normalised financial results that excluded the financial results of Cell C and CEC, all extraneous items arising from the restructuring transactions and the listing of Cell C, and losses on disposal and impairments.

On a normalised basis, the company reported earnings before interest, taxes, depreciation and amortisation (Ebitda) of R923-million, while gross income reached R2.55-billion and normalised revenue was R9.44-billion.

Normalised net profit after tax was R677-million, with headline and core headline earnings of R681-million and core headline earnings per share (HEPS) of 75.33c.

On inclusion of the gross value generated through PINless top-ups, prepaid electricity, ticketing and universal vouchers, effective gross revenue increased 7% to R99.9-billion, demonstrating the scale and continued relevance of Blu Label’s distribution and payments ecosystem.

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, Ebitda, on a reported basis, declined 397% to R4.77-billion, with profit after tax falling 297% to a net loss of R4.88-billion.

Headline and core headline earnings declined 82% and 81% respectively to R756-million and R798-million and core HEPS declined 81% to 88.20c.

Meanwhile, in the wake of the 2026 financial year materially reshaping the group, Blu Label entered the new financial year as a more focused group with a clearer capital structure, reduced structural complexity and a focus on growing its operating businesses rather than towards resolving legacy exposures.

Its portfolio is centred on platforms that can generate cash, deepen customer relationships and scale across the group’s extensive distribution footprint.

These platforms include distribution and payments, which incorporates airtime, data, prepaid electricity, digital vouchers, ticketing, handsets and devices; data intelligence, which brings together BluNova, Blu Label Data Solutions, analytics, AI, credit and risk capabilities; embedded financial and digital services, led by BluAdvance and its airtime, electricity and voucher advance products; and infrastructure and energy, combining Cigicell, municipal revenue assurance and BluEnergy’s renewable energy aggregation, trading and generation pipeline.

Strategic investments are shifting from build-out to commercial execution, with Blu Energy progressing toward first contracted revenues on the back of an expanding municipal/commercial pipeline and project readiness.

During the year under review, Blu Energy secured a multi-year energy trading licence from the National Energy Regulator of South Africa, which enables its participation in South Africa's electricity market reform and positions the group to supply renewable energy solutions to municipalities and independent power producers.

“Our priorities for the year ahead are straightforward: generate cash, allocate capital with discipline and execute against the opportunities already in front of us. Blu Label’s scale, procurement strength, data capability and distribution reach give us a strong base from which to navigate a difficult consumer environment and build sustainable shareholder value.”

The board declared a final dividend of 10c a share, bringing the total dividend for the year to 53.56c a share.

It also approved the start of a share repurchase programme, reflecting confidence in the group’s financial position and a disciplined approach to returning capital where this is value-accretive.