Blue Label Telecoms reports significant earnings growth and strategic restructuring

Blue Label Telecoms’ core headline earnings per share shot up to 461.63 cents from 76.08 cents in 2024, a result that also reflected the early impact of a simplified corporate structure and sharper operating model.

Gross profit was up by 2% to R3.38 billion. As part of an ongoing strategy review, Blue Label Telecoms is exploring a potential restructuring of the its’s subsidiaries and associates to separate Cell C and position it for a possible future listing. The processes to obtain the listing of Cell C were underway, said joint CEO Mark Levy.

The planned restructure would streamline Cell C’s capital structure and balance sheet ahead of a listing - Blue Label owns about 70% of Cell C currently directly and through various special purpose vehicles.

If successful, the move iwas intended to create clear benefits: Cell C will stand on its own merits as a listed business, while BLU Label will sharpen its focus and give investors a clearer view of its value on a standalone basis.

The past year marked a reset for Blue Label. It has restructured into seven buckets of solutions that combine physical and virtual distribution capabilities with an integrated digital ecosystem.

“This transformation – anchored in a new name (from 3 September, the group will officially change its name to BLU Label Unlimited) and brand identity – positions the business to unlock greater value for customers, partners, and shareholders,” said Levy.

The new BLU is a more focused, integrated, and agile organisation, designed to capture growth opportunities and drive sustained value in a fast-changing digital economy,” he said.

The rebrand and structural simplification aim to remove confusion, unite our people under a single identity, and unlock the full power of our platforms. We now have a business that’s built for scale, speed, and innovation,” said joint CEO Brett Levy.

The different solutions segments are BLU Distribution Solutions, BLU Platform Solutions, BLU Energy Solutions, BLU Media Solutions, BLU Data & AI Solutions, BLU Training Solutions, and BLU Telco Solutions.

If successful, the move would create clear benefits: Cell C would stand on its own merits as a listed business, while BLU Label would sharpen its strategic focus and give investors a clearer view of its value on a standalone basis.

The group’s scale, market reach, and technological infrastructure position it to capture growth across multiple high-potential sectors, from financial services and digital content to energy and data monetisation.

Looking ahead, the business focus would be to accelerate growth in core segments through deeper penetration of the group’s distribution and platform solutions, leveraging data and AI capabilities to unlock new revenue streams and strengthen customer engagement, and drive innovation in energy solutions to address South Africa’s electricity challenges while delivering sustainable returns.

High-value partnerships in telecoms and payments will be expanded, ensuring increased product stickiness and cross-sell opportunities, while strategic assets would be monetised, including Cell C, to enhance shareholder value and fund future expansion.

BUSINESS REPORT