Blu Label Unlimited smacked by R4.9bn Cell C write down
The company swung to a R4.9 billion full-year loss after having to write down its Cell C stake to match its listed value.
Blu Label Unlimited, a Johannesburg Stock Exchange-listed company, has reported a staggering R4.9 billion loss for the year 2026. The primary reason for this significant loss is the need to write down its stake in Cell C due to the difference between the company's book value and the market value of the mobile operator following its IPO.
The net income for Blu Label faced a 297% decline year-on-year due to the accounting adjustment. The company's joint-CEOs, Brett Levy and Mark Levy, described 2026 as a "transformational year" for Blu Label as they successfully restructured and spun out Cell C via a listing, which helped in streamlining their operations. BLU's stock price appreciated slightly in the first hour of trading, only to drop by 3.97% subsequently.
The company's market capitalization is now R7.3 billion. However, if the accounting write-down is excluded, the company reported a net profit of R677 million, translating into core earnings of 75.33c per share from revenue of R9.4 billion. Furthermore, BLU announced a dividend of 10c per share and initiated share buybacks, aiming to return capital to shareholders.
The company plans to focus on everyday services, including payments, financial services, data, and energy, with an emphasis on generating cash, allocating capital wisely, and executing on existing opportunities.
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