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 distributions, 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 30 Nov 2025 was ZAR 5 billion; imputed gross revenue was ZAR 50.9 billion, up 11% year-over-year.

• Gross income reached ZAR 1.353 billion; normalized EBITDA was ZAR 535 million; net profit after tax was ZAR 389 million; headline and core headline earnings were ZAR 398 million (44.19 cents per share).

• Interim dividend of ZAR 0.4356 per share declared, first interim dividend in company history.

• Net loss of ZAR 5.0 billion reported, mainly from a ZAR 6.0 billion loss on Cell C disposal, offset by an ZAR 841 million gain on remeasurement.

• Cash and cash equivalents at period-end: ZAR 2.69 billion; net cash generated from operating activities: ZAR 1.02 billion.

Outlook and guidance

• Focus on growth, cash generation, and maintaining a dividend-yielding, asset-light business model, with scalable digital platforms and infrastructure.

• Management targets ROE above 18% and expects 70%-80% free working cash conversion.

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

• Cell C expected to start paying dividends in May 2027, potentially benefiting Blu Label shareholders.

• Strategic investments in data analytics, AI, and digital platforms moving to commercial execution.