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.

- EDWARD WEST

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 was 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.