Blu Label Unlimited Group (BLU) investor relations material

Executive summary

• Achieved disciplined execution and simplification through the successful restructuring and listing of Cell C, reducing risk and improving earnings visibility while retaining strategic optionality.

• Delivered normalized revenue of ZAR 9.4 billion, EBITDA of ZAR 923 million, and net profit after tax of ZAR 677 million for FY2026.

• Core headline earnings were ZAR 681 million (75.33 cents per share), with a total dividend of 53.56 cents per share.

• Resumed dividend distributions and initiated a share repurchase program, reflecting confidence in cash generation and capital allocation flexibility.

• BluAdvance, BluNova, Cigicell, and BluEnergy platforms scaled and contributed to growth, margin enhancement, and new energy sector opportunities.

Financial highlights

• Normalized revenue reached ZAR 9.4 billion; gross income was ZAR 2.555 billion; EBITDA ZAR 923 million; net profit after tax ZAR 677 million.

• Core headline earnings were ZAR 681 million, or 75.33 cents per share; total dividend for the year was 53.56 cents per share.

• Effective gross revenue (imputed) grew 7% year-over-year to ZAR 99.9 billion.

• Reported revenue was ZAR 13.05 billion, with significant non-recurring items from Cell C restructuring; headline earnings adjustments included a net loss of ZAR 5.6 billion.

• Free cash flow conversion rate approximately 65%; cash conversion ratio about 82%.

Outlook and guidance

• FY2027 priorities: cash generation, liquidity, disciplined execution, and margin protection, with a focus on commercial execution in energy and payments.

• Expect meaningful earnings from new energy and municipal projects from June 2027 onwards, with annuity income potential of 3–10 years.

• Dividend policy targets 30–50% payout of core headline earnings (excluding Cell C), with 50–70% of Cell C dividends also distributed.

• Board attention now directed toward growing operating businesses post-Cell C restructuring.