South African brothers, Brett and Mark Levy, lead Blue Label Telecoms to $140 million profit

Blue Label Telecoms, led by Brett and Mark Levy, posts $140.6 million profit as Cell C turnaround and digital growth drive headline earnings surge.

South African brothers, Brett and Mark Levy, lead Blue Label Telecoms to $140 million profit
South African brothers, Brett and Mark Levy, lead Blue Label Telecoms to $140 million profit

Blue Label Telecoms, a South African technology group led by founding brothers Brett and Mark Levy, posted a profit of over $140 million for the year ended May 31, 2025, driven by robust operational performance and the long-awaited turnaround at Cell C.

Cell C reversal powers profit surge

According to its 2025 full-year results, the JSE-listed digital distribution company delivered robust financial performance, posting a net profit of R2.48 billion ($140.57 million) for the year ended May 31, 2025—up 276 percent from R659.59 million ($37.29 million) the previous year.

While revenue slipped 3.8 percent to R14.1 billion ($797.4 million) from R14.6 billion ($825.13 million), headline earnings soared 523 percent to R4.1 billion ($231.58 million), fueled by robust operations and the long-awaited turnaround at Cell C. Growth was driven by Blue Label’s digital distribution and payment services, including PINless top-ups, prepaid electricity, ticketing, and universal vouchers. 

A key contributor was Cell C, where the company reversed R1.56 billion ($88.18 million) in prior impairments and recognized R1.51 billion ($85.36 million) in accumulated profits, fully accounting for previously unrecorded losses since 2019. Cell C alone contributed R1.51 billion ($85.36 million) to net profit, lifting shareholder earnings from R647 million ($36.58 million) in 2024 to R2.48 billion ($140.19 million) in 2025.

Distribution steady, fintech and solutions lift margins

Within the Africa distribution segment, which houses prepaid electricity, vouchers, and PINless top-ups, underlying growth continued despite a 4 percent decline in low-margin voucher sales. Adjusted gross revenue for the segment rose 8 percent to R95.8 billion ($5.42 billion) amid strong demand for BluVoucher products, supporting overall performance. 

Blue Label’s smaller Solutions segment faced an 11 percent decline in SMS-driven revenue to R226 million, yet improved profitability, with gross profit margins widening to 36.07 percent and core headline earnings rising 23 percent to R53.9 million ($3.05 million), supported by associate contributions. The corporate segment, however, remained a drag, posting a R188 million ($10.63 million) loss, widening 15 percent year-on-year.

Blue Label Telecoms soars on Levy brothers’ leadership

Blue Label Telecoms, founded by brothers Brett and Mark Levy in 2001, has grown from a small prepaid airtime distributor in Gauteng into one of South Africa’s leading digital transaction service providers. Brett and Mark Levy, holding 9.74 and 9.08 percent stake respectively—totaling 171.99 million shares—continue to guide the company’s expansion in prepaid products and fintech services nationwide.

For the year ended May 31, 2025, Blue Label’s total assets rose 30.6 percent to R19.8 billion ($1.12 billion). Retained earnings jumped more than sevenfold to R2.82 billion ($159.15 million), supported by the reversal of historic Cell C impairments, recognition of previously unrecorded profits, and strong growth across distribution and fintech businesses.

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