Blu Label, the Sandton-based electronic token and transactional services distributor co-founded and led by joint chief executives Brett Levy and Mark Levy, resumed dividend payments and launched a share repurchase program for the financial year ended May 31, 2026. The capital returns followed the successful pre-listing restructuring and separate listing of mobile network operator Cell C Holdings Limited on the Johannesburg Stock Exchange (JSE).

Dividend distributions resume after restructuring milestone

The JSE-listed essential-services and distribution group, headquartered in Sandton, declared a final gross dividend of R0.1 ($0.0062) per share, following an interim dividend of R0.43 ($0.02) per share paid earlier in the financial year. This brought the total payout for the 2026 financial year to R0.535 ($0.03) per share, according to its audited annual financial statements.

On a normalized basis—which excludes extraneous accounting items, impairments, and the deconsolidation effects of Cell C and Comm Equipment Company (CEC)—Blu Label generated gross income of R2.56 billion ($160.2 million) and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of R923 million ($57.7 million). Core headline earnings on this basis reached R681 million ($43 million), translating to core headline earnings of R0.75 (0.04) per share.

On an IFRS-reported basis, core headline earnings stood at R797.86 million ($50 million), or R0.88 ($0.05) per share, while the group reported an accounting net loss attributable to equity holders of R4.88 billion due to non-operational IFRS derecognition charges of R6.03 billion ($377.2 million) linked to the Cell C market unbundling.

Core distribution and prepaid platforms drive revenue

Total reported group revenue reached R13.05 billion ($816.4 million) for the year ended May 31, 2026, compared with R14.05 billion ($879 million) a year earlier. On inclusion of gross imputed amounts generated across virtual products—including PINless top-ups, prepaid electricity, bus ticketing, and universal vouchers—effective gross group turnover expanded 7 percent to R99.9 billion ($6.25 million) from R93.2 billion ($5.83 billion) in 2025.

Gross turnover generated from PINless airtime and data top-ups increased by R3.3 billion ($206.4 million) to R25.1 billion ($1.57 billion) from R21.8 billion. Prepaid electricity revenue transacted on behalf of utilities and municipalities rose 4 percent to R46.2 billion ($2.9 billion) from R44.2 billion ($2.76 billion), generating R279 million ($17.44 million) in net commissions.

Sales of universal digital vouchers, led by BluVoucher through commercial bank channels, advanced 22 percent to R18.7 billion ($1.17 billion) from R15.3 billion ($956.7 million). Solutions division external revenue grew to R245.76 million ($15.4 million) from R225.62 million ($14.1 million), while Blu Energy secured a multi-year energy trading licence from the National Energy Regulator of South Africa.

Cell C listing de-risks balance sheet and lifts liquidity

Blu Label Unlimited Group conducts virtual distribution across thousands of touchpoints, delivering airtime, data, prepaid utility metering, and digital transactional services across southern Africa. Joint Chief Executive Officers Brett Levy and Mark Levy hold direct and indirect beneficial stakes of 10.99 percent (100,433,757 shares) and 10.33 percent (94,374,551 shares) respectively, making them the group’s largest individual shareholders.

Following the separate listing of Cell C at an initial market capitalisation of R9.01 billion ($563.7 million), Blu Label deconsolidated the carrier and transitioned its retained 49.53 percent holding into an equity-accounted associate valued at R4.84 billion ($302.8 million), alongside a 15.95 percent interest classified under non-current assets held for sale at R1.44 billion ($90.1 million).

Cash proceeds of R2.7 billion ($169 million) from the public sell-down allowed the group to settle interest-bearing debt obligations, reducing total borrowings to R4.67 billion ($292.2 million) from R5.45 billion. Group cash and cash equivalents accumulated to R964.74 million at year-end, positioning the business with reduced complexity and a formal policy targeting annual dividend distributions between 30 percent and 50 percent of standalone core headline earnings.