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Blu Label Telecoms cut earnings due to Cell C spin-off but raised dividends, pivoting to renewable energy and digital infrastructure.
Blu Label Telecoms reported a 16% decline in normalized earnings per share to 38.60 cents, citing accounting impacts from the 2025 Cell C spin-off, though core revenue rose 11% to 51 billion rand.
The company resumed dividends with a 43.56-cent interim payout, its first in eight years, backed by a stronger capital base after raising R1.8 billion from selling a 30% stake in Cell C. Blu Label is pivoting to digital infrastructure and renewable energy through Blue Energy, which secured a multi-year Nersa trading license and plans solar and wind projects up to 20 megawatts.
The company also expanded prepaid electricity and municipal payment services, while investing in AI and data analytics.
Shares rose 6.22% on the dividend news, ending the period at R9.76.
Blu Label Telecoms redujo las ganancias debido a la escisión de Cell C, pero aumentó los dividendos, centrándose en las energías renovables y la infraestructura digital.