Blu Label Unlimited Group (BLU) H1 2025 earnings summary

Executive summary

• Revenue recognized at R7.2 billion, with effective revenue including PINless top-ups, prepaid electricity, ticketing, and universal vouchers up 8% to R47.4 billion year-over-year.

• Gross profit increased 2% to R1.63 billion, with gross profit margin rising from 21.08% to 22.44%.

• EBITDA declined 6% to R653 million, mainly due to lower CEC subscriber base and higher finance costs.

• Core headline earnings per share were stable at 47.20 cents.

• Significant progress in technology, product launches, distribution expansion, and energy segment growth, with brand and MVNO business recognized for best video experience in South Africa.

Financial highlights

• Imputed half-year revenue rose 8% year-over-year to R47.4 billion; reported revenue (excluding PINless products) was R7.2 billion.

• Gross profit increased 2% to R1.63 billion; gross margin improved to 22.44% from 21.08% year-over-year.

• Core headline earnings per share at 47.20 cents, marginally up from 47.15 cents per share year-over-year.

• EBITDA decreased 6% to R653 million, mainly due to lower CEC subscriber base and higher finance costs.

• Net profit after tax was R395 million.

Outlook and guidance

• Management expects continued growth in gross revenue from universal vouchers and prepaid electricity, supported by NERSA-approved tariff adjustments and increased consumption.

• Focus on executing strategic priorities, integrating postpaid business, investing in digital platforms, and accelerating MVNO and B2B growth.

• No further cash injections into Cell C anticipated; focus shifts to cash generation and destocking.

• Dividend payments may resume in 2024, pending board approval.

• Cell C's recapitalisation and strategic changes are expected to improve liquidity and performance.