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BLUE LABEL INTEGRATED ANNUAL REPORT 2016
34
Financial Director’s report
continued
This segment comprises Viamedia, Supa Pesa, Blue Label One, Cellfind, Panacea
and Simigenix, all of which contributed positive growth to revenue, EBITDA and
core net profit.
Of the growth in EBITDA, Viamedia contributed R27 million, of which R17 million
pertained to the release of a contingent portion of the acquisition price of a joint
venture with Supa Pesa. The balance of the growth in EBITDA of R33 million
pertained to the balance of the companies.
At core net profit level, of the positive contributions to growth, Viamedia
accounted for R18 million, Blue Label One for R3 million and Cellfind, Panacea
Mobile and Simigenix for R12 million. The balance of growth of R2 million was
attributable to Blue Label Engage which incurred a loss in the comparative year.
This company was disposed of in December 2014.
2016
R’000
2015
R’000
Growth
R’000
%
growth
Solutions
Revenue
190 326
146 163
44 163
30
Gross profit
64 418
62 837
1 581
3
EBITDA
35 889
40 831
(4 942)
(12)
Core net profit
16 116
23 975
(7 859)
(33)
Core headline earnings
21 564
23 975
(2 411)
(10)
In October 2015 Velociti was disposed of at a loss of R5.4 million. On exclusion of
this capital loss as well as its historical positive contribution of R4 million to core
net profit, the growth of the remaining entities increased from R20 million to
R21.6 million (8%). This growth was primarily attributable to the contribution by
Blue Label Data Solutions which generated revenue of R155 million and a growth
in EBITDA of 12% from R33 million to R37 million. Its contribution to core
headline earnings amounted to R21.4 million, equating to a growth of 12%.
2016
R’000
2015
R’000
Growth
R’000
%
growth
Corporate
EBITDA
(84 057)
(85 656)
1 599
2
Core net loss
(93 748)
(93 754)
6
—
Core headline loss
(93 745)
(97 716)
3 971
4
In the comparative year EBITDA losses
were confined to R86 million inclusive
of a once-off income receipt.
The current year EBITDA includes a
release of the contingent portion of
the acquisition price of Viamedia
amounting to R31 million, partially
offset by professional fees of
R22 million relating to potential
acquisitions. This limited EBITDA
losses to R84 million, resulting in a
marginal decline of 2%.
Statement of financial
position
Total assets increased by R279 million
to R7.3 billion, of which growth in
non-current assets accounted for
R235 million and current assets for
R44 million.
The movement in non-current assets
included a net increase in investments
in associate and joint venture
companies of R362 million. These
increases were offset by declines of
R6 million of capital expenditure after
depreciation, R53 million in intangible
assets and goodwill, R24 million in
loans receivable, R36 million in trade
receivables relating to postpaid
contracts in excess of 12 months and
R8 million in other non-current assets.
The net increase in investment in
associate and joint venture companies
comprised additional capital
contributions to BLM of R43 million
and OSI of R168 million, a positive
impact on foreign currency translation
reserves of R82 million, a loan of
R60 million granted to Edgars Connect,