Wrap Text
Audited Consolidated Annual Financial Results for the year ended 31 May 2025
Blue Label Telecoms Limited
(Incorporated in the Republic of South Africa)
(Registration number 2006/022679/06)
Share code: BLU
ISIN: ZAE000109088
("Blue Label" or "the Group" or "the Company")
AUDITED CONSOLIDATED ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 MAY 2025
FINANCIAL RESULTS
- Revenue of R14.1 billion*
- Increase in gross profit of 2% to R3.38 billion (2024: R3.30 billion)
- Increase in gross profit margin from 22.57% to 24.02%
- Increase in EBITDA of 31% to R1.60 billion (2024: R1.23 billion)
- Core headline earnings of 461.63 cents per share (2024: 76.08 cents per share)
* On inclusion of the gross amount generated on "PINless top-ups", prepaid electricity,
ticketing and universal vouchers, the effective increase equated to 7% from R89.3 billion
to R96 billion.
SUMMARISED GROUP INCOME STATEMENT
Extraneous
Group contributions* Remaining Group Growth Growth
May 2025 May 2025 May 2025 May 2024 remaining remaining
R'000 R'000 R'000 R'000 R'000 %
Revenue 14 050 177 - 14 050 177 14 598 444 (548 267) (4%)
Gross profit 3 375 003 - 3 375 003 3 295 038 79 965 2%
EBITDA 1 604 090 176 313 1 427 777 1 225 475 202 302 17%
Finance costs (1 090 314) - (1 090 314) (1 121 356) 31 042 3%
Finance income 803 857 - 803 857 901 884 (98 027) (11%)
Reversal of impairments in associates 1 555 042 1 558 621 (3 579) - (3 579)
Share of (loss)/profit from associates
and joint ventures (55 376) (1 606 557) 1 551 181 15 416 1 535 765 9962%
- Group's share of Cell C's accumulated
net losses from 1 June 2019 to 31 May 2024 (1 606 557) (1 606 557) - - -
- Group's share of profits from Cell C from
1 June 2024 to 31 May 2025 1 507 904 - 1 507 904 - 1 507 904
- Group's share of profits from other
associates and joint ventures 43 277 - 43 277 15 416 27 861 181%
Net profit after tax 2 484 243 128 375 2 355 868 647 386 1 708 482 264%
Headline earnings adjustment 1 612 163 1 584 653 27 510 10 311 17 199 167%
Headline earnings 4 096 406 1 713 028 2 383 378 657 697 1 725 681 262%
Core headline earnings 4 147 296 1 713 028 2 434 268 679 488 1 754 780 258%
Gross profit margin (%) 24.02% 24.02% 22.57%
EBITDA margin (%) 11.42% 10.16% 8.39%
Weighted average shares ('000) 898 408 898 408 893 117
Share performance
EPS (cents) 276.52 262.23 72.49 189.74 262%
HEPS (cents) 455.96 265.29 73.64 191.65 260%
Core HEPS (cents) 461.63 270.95 76.08 194.87 256%
* The net positive extraneous contributions to Group earnings for the year ended 31 May 2025
were all attributable to the Group's investment in Cell C and can be broken down as follows:
- Fair value movements amounted to R176 million, comprising fair value gains of R223 million
and R149 million on the Gramercy and SPV1 derivative instruments respectively, partially
offset by a fair value loss of R196 million on the Class B Preference Shares.
- Reversal of investment impairment of R1.559 billion relating to the initial impairment of
R2.5 billion on Blue Label's investment in Cell C, originally recognised as at 31 May 2019.
Of the total impairment, R962.5 million was reversed in November 2022, with the balance of
R1.559 billion reversed in the current year, in line with an improvement in Cell C's equity
valuation.
- Recognition of the Group's share of Cell C's accumulated net losses of R1.607 billion for the
period from 1 June 2019 to 31 May 2024. As at 31 May 2025, the Group has fully recognised its
share of all previously unrecognised historical losses associated with Cell C.
- Positive headline earnings adjustments of R1.585 billion, attributable to the reversal of the
Group's share of historical impairments recognised by Cell C of R3.144 billion, partially offset
by the reversal of the impairment previously recognised on Blue Label's investment in Cell C of
R1.559 billion.
Group revenue amounted to R14.1 billion. As only the gross profit earned on "PINless top-ups",
prepaid electricity, ticketing and universal vouchers is recognised as revenue, on imputing the
gross revenue generated from these sources, the effective growth in revenue equated to
R6.7 billion (7%), resulting in a total revenue of R96 billion compared to the prior year of
R89.3 billion.
Gross profit increased by R80 million (2%) from R3.295 billion to R3.375 billion, corresponding
to an increase in margins from 22.57% to 24.02%. This increase in margins can be partially
attributed to the growth in "PINless top-ups", prepaid electricity, ticketing and universal
vouchers, where only the gross profit earned thereon is recognised as revenue.
Excluding net positive extraneous contributions of R176 million in the current year, EBITDA
increased by R202 million (17%), from R1.225 billion to R1.428 billion. This increase reflected
a R288 million decline in Comm Equipment Company (CEC), offset by a R490 million increase across
the remaining Group entities compared to the prior year.
The decline in EBITDA in CEC was primarily driven by a reduction in the subscriber base and a
lower average revenue per user (ARPU).
Included in the Group's share of losses from associates of R55 million is the recognition of the
Group's share of Cell C's accumulated net losses from 1 June 2019 to 31 May 2024, which amounted
to R1.607 billion. This was partially offset by the Group recognising its share of Cell C's
net profits of R1.508 billion in the current year, primarily attributable to the recognition of
a portion of Cell C's deferred tax asset, as well as R43 million in profits from other associates.
As at 31 May 2025, the Group has fully recognised its share of all previously unrecognised historical
losses associated with Cell C.
Excluding net positive extraneous contributions of R1.713 billion, arising primarily from the reversal
of the Cell C impairment, the subsequent recognition of the Group's share of previously unrecognised
losses, and related headline earnings adjustments, core headline earnings increased by
R1.755 billion (258%), from R679 million to R2.434 billion. This increase reflected a R347 million
decline in CEC, offset by a R2.101 billion increase across the remaining Group entities compared to
the prior year.
Core headline earnings per share (excluding extraneous contributions) increased by 256% from
76.08 cents in the prior year to 270.95 cents.
Earnings per share for the current and prior years were 276.52 cents and 72.49 cents, respectively.
Headline earnings per share for the same years were 455.96 cents and 73.64 cents, respectively.
Excluding the extraneous contributions in the current year, earnings per share increased by 262%
to 262.23 cents, while headline earnings per share increased by 260% to 265.29 cents.
Appreciation
The Blue Label Board would like to extend its gratitude to the staff, suppliers, customers, and
business partners for their ongoing support and dedication to the Group.
Short-form announcement
This short-form announcement is the responsibility of the directors of the Company. This short-form
announcement is based on an extract of the audited consolidated annual financial statements for the
year ended 31 May 2025 released on SENS on 27 August 2025. The announcement itself is not audited
and does not contain full or complete details.
The consolidated annual financial statements for the year ended 31 May 2025 have been audited by
SizweNtsalubaGobodo Grant Thornton Inc. (SNGGT), who have expressed an unmodified opinion thereon.
Any investment decision by investors and/or shareholders should be based on consideration of the
full audited consolidated annual financial statements for the year ended 31 May 2025. These results
together with a copy of the accompanying auditor's reports are available on the Company's website
(www.bluelabeltelecoms.co.za).
The JSE link is as follows:
https://senspdf.jse.co.za/documents/2025/JSE/ISSE/BLU/FYresults.pdf.
For and on behalf of the Board
LM Nestadt
Chairman
BM Levy and MS Levy
Joint Chief Executive Officers
DA Suntup* CA(SA)
Financial Director
27 August 2025
* Supervised the preparation and review of the Group's audited year-end results.
Company Secretary: J van Eden
Sponsor: Investec Bank Limited
Auditor: SizweNtsalubaGobodo Grant Thornton Inc.
DISCLAIMER This document contains certain statements that are "forward looking" with respect to
certain of the Group's plans, goals and expectations relating to its future performance, results,
strategies and objectives. Words such as "may", "could", "will", "expect", "intend", "estimate",
"anticipate", "aim", "outlook", "believe", "plan", "seek", "predict" or similar expressions
typically identify forward looking statements. These forward looking statements are not statements
of fact or guarantees of future performance, results, strategies and objectives, and by their
nature involve risk and uncertainty because they relate to future events and circumstances which
are difficult to predict and are beyond the Group's control, including but not limited to, domestic
and global economic business conditions, market-related risks such as fluctuations in interest rates
and exchange rates, the policies and actions of regulatory authorities, the impact of competition,
inflation, deflation, the timing impact and other uncertainties of future acquisitions or combinations
within relevant industries, as well as the impact of changes in domestic and global legislation and
regulations in the jurisdictions in which the Group and its affiliates operate. The Group's actual
future performance, results, strategies and objectives may differ materially from the plans, goals
and expectations expressed or implied in the forward looking statements. The Group makes no
representations or warranty, express or implied, that these forward looking statements will be
achieved, and undue reliance should not be placed on such statements. The forward looking statements
in this document are not reviewed and reported on by the Group's external assurance providers.
The Group undertakes no obligation to update the historical information or forward looking
statements in this document and does not assume responsibility for any loss or damage arising
as a result of the reliance by any party thereon.
Date: 27-08-2025 07:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
