Blu Label Unlimited Group (BLU) H1 2026 earnings summary

Executive summary

• Completed multi-year restructuring and listing of Cell C, transitioning it to an asset-light, wholesale-enabled operator with a sustainable capital structure, reducing risk exposure and enhancing earnings visibility.

• Achieved disciplined execution and strategic focus, transitioning toward a diversified digital infrastructure platform with improved revenue quality, stabilizing margins, and strong cash generation.

• Blu Label resumed dividend payments, declaring an interim dividend of ZAR 398 million (ZAR 0.4356 per share), representing 100% of normalized core headline earnings for the period.

• Strategic simplification and focus have led to visible progress in earnings quality, cash generation, and growth optionality.

• Post period-end, secured a multi-year energy trading license for BluEnergy, enabling entry into South Africa's power sector reform.

Financial highlights

• Normalized revenue for the six months ended Nov 30, 2025: ZAR 5 billion; imputed gross revenue: ZAR 50.9 billion, up 11% year-over-year.

• Normalized EBITDA: ZAR 535 million; net profit after tax: ZAR 389 million; core headline earnings: ZAR 398 million (44.19 cents/share).

• Interim dividend: ZAR 0.4356 per share declared.

• Net loss of ZAR 5.2 billion from Cell C investment (added back for headline earnings), including a ZAR 6 billion loss on disposal and ZAR 841 million gain on remeasurement.

• Cash and cash equivalents at period-end: ZAR 2.69 billion, with a ZAR 1.8 billion increase from Cell C share sale proceeds.

Outlook and guidance

• Future results will reflect equity-accounted contributions from Cell C (49.47% stake) and CEC earnings post-disposal.

• Focus on growth, cash generation, and maintaining a dividend-yielding profile, with management targeting ROE above 18% and 70%-80% free cash conversion.

• Dividend policy to be finalized, with intention to pay significant dividends, including potential pass-through of Cell C dividends from 2027.

• Data, energy, and embedded finance are highlighted as key growth drivers and sources of future optionality.

• BluEnergy to deliver renewable energy solutions, with first contracted revenues expected soon.