We continue to focus on diversifying our range of products and services and expanding our distribution footprint by growing our business organically

20 February 2013

Said Joint CEO’s Brett and Mark Levy, Blue Label Telecoms Limited, on the announcement of the results for the half year ended 30 November 2012.

Highlights for the half year included the following:

  • Headline earnings per share increased by 26% after excluding a once off income receipt in the comparative period*.
  • Decline in headline earnings per share by 5% after including the once off income receipt in the comparative period*
  • Increase in revenue to R9.5 billion.
  • Increase in gross profit to R644 million
  • Increase in gross profit margins by 0,42% to 6,80%
  • Partnerships key in delivering growth: In South Africa with the mobile network operators, the State Bank of India and Grupo Bimbo in Mexico.
    * once off income receipt amounted to R79,4 million

The South African Distribution segment was the predominant contributor to group profitability.

On the international front, Oxigen Services India continues adding versatile payment solutions to its telecomsrecharge platform, whilst building additional capacity particularly for serving the un-banked in rural India. BlueLabel Mexico’s distribution capabilities accelerated at a rapid rate as it continued rolling–out sophisticatedpoints of sale devices across the country.

Looking forward the group plans the launch of a number of innovative financial services products. Recently launched loyalty programme initiatives are expected to generate revenue through supporter engagementprogrammes. SMS aggregation and distribution capabilities are expected to gain further momentum.Consumer awareness of the benefits of prepaid electricity is expected to continue and in turn will impactfavourably on commissions earned. Oxigen Services India is expected to continue its drive into banking servicesin partnership with leading banks and financial institutions.

The group’s financial position remains robust and liquid, which bodes well for future growth, acquisitions and distributions to shareholders.