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BLUE LABEL INTEGRATED ANNUAL REPORT 2015
FINANCIAL DIRECTOR’S REPORT
CONTINUED
The benefits of Oxigen Services India’s defined
strategy of becoming India’s first non-banked mobile
wallet that empowers the unbanked masses to
instantly transfer and receive cash across the entire
country continues to gain momentum. This has
been primarily due to its focus on money transfer
services without detracting from its traditional
airtime sales.
Daily money transfer deposits have increased from
USD2.3 million per day as at 31 May 2014 to
USD3.3 million per day as at 31 May 2015, this
increased exponentially through its connectivity with
the National Payment Corporation of India.
Blue Label Mexico
In the comparative year, Blue Label Mexico incurred
losses of R131 million. The Group’s share thereof
equated to R61 million after the amortisation of
intangible assets. In the current year, Blue Label
Mexico’s losses increased to an equivalent of
R186 million, of which the Group’s share equated
to R89 million.
In spite of revenue increasing by 23%, the main
reasons for further losses were attributable to
continued margin compression and an increase in
overhead costs. The increase in overheads was
necessitated by the need for enhanced post-sale
customer support as well as systems fortification.
2014
R’000
Growth
R’000
%
growth
International Distribution
EBITDA
35 379
(13 961)
49 340
353
Share of (losses)/profits from
associates and joint ventures
(81 269)
(56 249)
(25 020)
(44)
– Ukash
12 004
14 089
(2 085)
(15)
– Oxigen Services India
2 619
(3 259)
5 878
180
– Blue Label Mexico
(88 508)
(60 844)
(27 664)
(45)
– Other
(7 384)
(6 235)
(1 149)
(18)
Core net loss
(54 646)
(59 987)
5 341
9
– Equity holders of the parent
(46 958)
(47 862)
904
2
– Non-controlling interests
(7 688)
(12 125)
4 437
37
2015
R’000
The Group disposed of its interest in Ukash at the
end of March 2015. This profit on disposal increased
EBITDA by R37 million. The balance of the growth
was attributable to a decline in expenditure incurred
by Africa Prepaid Services Nigeria (APSN). Legal fees
declined from R20.9 million to R9.4 million. These
costs will not perpetuate as litigation matters have
been settled.
The share of net losses from associates and joint
ventures comprised the following:
Ukash
The Group’s share of profits in Ukash, after the
amortisation of intangible assets, declined by 15%
from R14 million to R12 million. This decline was
attributable to the Group having sold its interest in
Ukash after 10 months of trading in the current
financial year.
Oxigen Services India
There was a turnaround of the Group’s share of
losses of R3.3 million in the comparative year to a
share of profits equating to R2.6 million in the
current year, after the amortisation of intangible
assets. This positive turnaround was attributable to
increases in revenue by 15% and gross profit by
21%, reported in their local currency.