Blue Label Telecoms Limited delivers an encouraging performance for the half year ended 30 November 2015

24 February 2016
Increase in revenue of 25% to R12.9 billion
Increase in gross profit of 17% to R919 million
Increase in EBITDA of 20% to R620 million
Increase in headline earnings per share of 25% to 53.26 cents
Increase in cash and cash equivalents by R694 million to R1.5 billion

Blue Label Telecoms delivered an encouraging performance for the six months ended 30 November 2015, resulting in growth in headline earnings per share of 25% to 53.26 cents.  Earnings per share increased by 23% to 52.46 cents.

According to Brett Levy and Mark Levy, joint CEO’s of Blue Label Telecoms, in spite of a challenging economic environment, the Group’s performance was attributable to organic growth, underpinned by an expanding distribution channel and in turn, growth in market share.

Prospects for the year ahead include:
The proposed transaction to participate in the recapitalisation of Cell C by contributing R4 billion for a 35% shareholding, is compelling both from an investment and commercial perspective.

The initiative with the Edcon Group relating to standalone “Edgars Connect” retail stores is expected to gain momentum through the establishment of additional outlets, which are ideal platforms for Blue Label to implement its retail strategy for the marketing of its products and services.

The development of Mobile Money Transfers in South Africa is in its final stages and implementation will soon commence.

In the South African Distribution Segment, the bouquet of products now includes mobile handsets & tablets, whilst low-cost smartphones are expected to reach a wider spectrum of consumers. Each of these products will enhance the sales of prepaid tokens of value.

On the International front, the Group’s share of losses in Blue Label Mexico (‘BLM’) declined by 28% to R32.5 million. The decline in losses is expected to continue in line with BLM’s rollout of prepaid starter packs, which is gaining momentum monthly.

Oxigen Services India will continue to focus on enhancing its mobile wallet base. It is the intention of the company to perpetuate its marketing of the benefits of prepaid wallets to the vast unbanked population of India.  Growth in the base will not only increase revenue via transactional fees, but will simultaneously enhance the underlying value of Oxigen in terms of market-related values per wallet.