Blue Label Telecoms Integrated Annual Report 2019

46 Blue Label integrated annual report 2019 SOLUTIONS This segment comprises Datacel, Blue Label Data Solutions (BLDS), a data aggregation and lead generation entity in which the Group owns 81%, and a 50% joint venture shareholding by BLDS in United Call Centre Solutions, an outbound call centre operation. May 2019 R’000 May 2018 R’000 Growth R’000 Growth % Revenue 203 238 195 089 8 149 4 Gross profit 61 885 63 574 (1 689) (3) EBITDA 37 786 42 838 (5 052) (12) Share of (losses)/profits from associates and joint ventures 22 769 4 579 18 190 397 Net profit 43 563 29 836 13 727 46 Core net profit 43 563 29 836 13 727 46 Core headline earnings 43 563 29 814 13 749 46 The growth in revenue of 4% to R203 million was attributable to increased demand for aggregated data and lead generations. A marginal decline in gross profit margins from 32.59% to 30.45% resulted in a nominal movement in gross profit. After overhead increases of 10%, EBITDA equated to R38 million. Of the core headline earnings of R44 million, BLDS accounted for R26 million. United Call Centre Solutions generated earnings of R45.1 million, of which BLDS’s share amounted to R22.5 million. After accounting for a minority shareholding of 19%, the Group’s share thereof amounted to R18 million. CORPORATE OSI May 2019 R’000 Remaining entities May 2019 R’000 OSI May 2018 R’000 Remaining entities May 2018 R’000 Growth remaining entities R’000 Growth remaining entities % EBITDA (234 611) (121 689) (112 922) (146 489) – (146 489) 33 567 23 Net loss (259 194) (121 689) (137 505) (211 463) (70 925) (140 538) 3 033 2 Core net loss (259 194) (121 689) (137 505) (211 463) (70 925) (140 538) 3 033 2 Core headline loss (259 194) (121 689) (137 505) (211 601) (70 925) (140 676) 3 171 2 On exclusion of the loan impairment of R60 million pertaining to 2DFine and R62 million to the liability relating to financial guarantee contracts, the negative contribution to Group core headline earnings declined by R3 million to R138 million. May 2019 R’000 May 2018 R’000 Financial Director’s report continued