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BLUE LABEL INTEGRATED ANNUAL REPORT 2015
challenges, given the consolidating telco landscape
resulting from regulatory changes.
During the course of the financial year we disposed
of our minority shareholding in Ukash, contributing
R37 million to pre-tax profit in this regard.
The Group once again achieved growth in its
financial performance and returns to shareholders.
Headline earnings per share increased 21% to
82.26 cents, on an EBITDA uplift of 37% to
R1.08 billion. The increase in headline earnings was
achieved through organic growth in the South
African distribution segment and augmented by the
acquisitions of RMCS and Viamedia. The growth in
earnings was primarily attributable to increases in
revenue of 14% and gross profit of 22%. Gross
profit margins increased from 6.96% to 7.46%.
Cash at year-end amounted to R788 million.
The Board approved ordinary dividend No 6 of
31 cents per share (2014: 27 cents per share),
equating to a dividend cover of 2.62 times or
pay-out ratio of 38% on HEPS.
Since the listing in 2007, the Company has achieved
the following worthy milestones:
•
•
Gross profit margin has grown from 5.56%
to 7.46% in the current period;
•
•
Revenue has grown from R13 billion to
R22 billion;
•
•
Identification and introduction of additional
product categories besides prepaid airtime,
CHAIRMAN’S REPORT
Larry Nestadt
Chairman
“We continue
delivering on our
vision of being a
leading distributor of
secure e-tokens of
value and other
transactional services
in emerging
markets …”
DEAR STAKEHOLDERS
It has been 14 years since Blue Label commenced
commercialising the Levy brothers’ entrepreneurial
vision of offering prepaid airtime and other related
services to the mass market in South Africa. Through
our sophisticated and proprietary technology, the
business model now embraces a vast network of
POS devices, delivering both physical and virtual
goods and services across South Africa, India
and Mexico.
A key to the success of the Group has been the
strong relationships that it has established with both
its suppliers and customers.
In delivering on the Group’s stated strategy, this year
we further diversified our range of products and
services, through entrenching the new product lines
of ticketing and prepaid water, as well as integrating
the most recent acquisitions, RMCS and Viamedia.
Our retail strategy progressed with the
establishment of the Edgars Connect brand of
standalone stores.
Oxigen Services India continues to benefit from the
exponential growth in India’s e-commerce platforms,
affirming its strategic decision to enter into the
financial services arena.
Although Blue Label Mexico incurred losses, it
continues to expand its distribution footprint of POS
devices and is steadily benefiting from its election to
become a multi-carrier. It has experienced several