Blue Label Telecoms' Growth Drive Continues
Johannesburg, 21 August 2012: Blue Label Telecoms today announced results for the year ended 31 May 2012.
Joint CEO's Brett and Mark Levy said: "We can again report another year of growth, driven by our expanding product and services range
into a growing distribution network, both locally and internationally."
- Revenue increased by 4% to R18.7 billion
- 13% increase in gross profit to R1.2 billion
- 26% EBITDA increase to R756 million*
- 40% increase in headline earnings per share to 64,65 cents*
- Cash generated from operating activitiestotalled R528 million
- Share buyback of 91,8 million shares absorbedR392 million
- Dividend up 64% to 23 cents per share
* includes the once-off confidential receipt of R79,4 million
The South African Distribution segment was again thepredominant contributor to group profitability.
On the international front, Oxigen Services India delivered a profit, mainly through its increasing shift to providing additional financial
service offerings. Blue Label Mexico's distribution capabilities accelerated, in partnership with Grupo Bimbo. The costs of gearing up infrastructure in support of the roll-out of point of sale devices continues to weigh on the business in Mexico.
Looking forward the group is expecting that annuity revenue from its expanding starter pack base will continue to grow. It is also building up its SMS aggregation capabilities through its own product development as well as through strategic acquisitions. Growing customer awareness of the benefits of prepaid electricity and through additional contracts with utilities are expected to enhance electricity commissions received. Internationally, distribution capabilities in Mexico are likely to add momentum to the roll-out of point of sale devices and Oxigen Services India is expected to continue its drive into banking services. The group will continue its focus on expanding its product range offering and distribution network, organically and through acquisition.