Blue Label Telecoms perpetuates its growth path in results for year ended 31 May 2016

24 August 2016

Growth in earnings culminated in increases in:

Headline earnings per share by 22% to 100.35 cents
Earnings per share by 20% to 103.85 cents
Dividend declared by 16% to 36 cents per share
Revenue by 19% to R26.2 billion
Gross profit by 11% to R1.8 billion
EBITDA by 15% to R1.2 billion

Blue Label Telecoms continued its momentum of growth in Group earnings resulting in headline earnings increasing by 22% to R668 million.

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

Prospects for the year ahead include:

Participation in the recapitalisation of Cell C by way of subscription of shares is progressing positively. Management are of the opinion that the transaction is compelling both from an investment and commercial perspective.

The Group is well positioned to meet the increased demand for low cost smart phones and tablets, through its extensive distribution network in South Africa and beyond its borders.

The distribution of prepaid electricity will continue to grow, through enhanced government initiatives to roll out additional prepaid electricity meters throughout South Africa.

New initiatives at Blue Label Mexico, including the escalation of starter pack distribution, will contribute to a reduction in losses that have arisen from its aggressive roll out strategy.

Oxigen Services India will focus on enhancing its mobile wallet subscriber base, with increased marketing to the vast unbanked population in India. This will result in growth in transactional revenue and the intrinsic value of the wallet subscriber base, which has accumulated to 22.6 million active wallets at present.