Organic growth lifts Blue Label Telecoms
by Staff Writer,
2016-02-24 10:18:12.0
PREPAID airtime and electricity distributor of Blue Label Telecoms on Wednesday reported interim headline earnings per share (HEPS) increased 25% to 53.26c.
For the six months to November 30 2015, the group said revenue had also increased 25% to R12.9bn, while cash and cash equivalents nearly doubled to R1.5bn.
The company said in spite of the challenging economic environment it had delivered an "encouraging performance".
"This performance was attributable to organic growth, underpinned by an expanding distribution channel and in turn a growth in market share," the company said.
Blue Label said its share of losses in its Mexican operations declined by 28% to R32.5m. This decline in losses was attributable to a 27% increase in revenue in the division. It expected this decline in losses to continue "in line with its roll-out of prepaid starter packs, which is gaining momentum on a monthly basis".
Total assets increased by R591m to R7.6bn during the review period.
Blue Label issued a statement in December detailing the potential subscription of 35% of the share capital of Cell C, "in terms of which Blue Label, in conjunction with other investors, has offered to participate in the recapitalisation of Cell C. Should the proposed transaction be concluded, Blue Label will contribute R4bn for the above subscription."
If the transaction were to go ahead, it would be "compelling from both an investment and commercial perspective", the company said.
Its initiative with the Edcon group relating to the latter’s standalone Edgars Connect retail stores was "expected to gain momentum through the establishment of additional outlets". This arrangement would increase the company’s strategy of including the marketing of its products and services on a retail basis, it said.
The company’s South African distribution network had enhanced "its bouquet of products to include mobile handsets and tablets".
Blue Label Telecoms joint CEO Brett Levy. Picture: MARTIN RHODES
PREPAID airtime and electricity distributor of Blue Label Telecoms on Wednesday reported interim headline earnings per share (HEPS) increased 25% to 53.26c.
For the six months to November 30 2015, the group said revenue had also increased 25% to R12.9bn, while cash and cash equivalents nearly doubled to R1.5bn.
The company said in spite of the challenging economic environment it had delivered an "encouraging performance".
"This performance was attributable to organic growth, underpinned by an expanding distribution channel and in turn a growth in market share," the company said.
Blue Label said its share of losses in its Mexican operations declined by 28% to R32.5m. This decline in losses was attributable to a 27% increase in revenue in the division. It expected this decline in losses to continue "in line with its roll-out of prepaid starter packs, which is gaining momentum on a monthly basis".
Total assets increased by R591m to R7.6bn during the review period.
Blue Label issued a statement in December detailing the potential subscription of 35% of the share capital of Cell C, "in terms of which Blue Label, in conjunction with other investors, has offered to participate in the recapitalisation of Cell C. Should the proposed transaction be concluded, Blue Label will contribute R4bn for the above subscription."
If the transaction were to go ahead, it would be "compelling from both an investment and commercial perspective", the company said.
Its initiative with the Edcon group relating to the latter’s standalone Edgars Connect retail stores was "expected to gain momentum through the establishment of additional outlets". This arrangement would increase the company’s strategy of including the marketing of its products and services on a retail basis, it said.
The company’s South African distribution network had enhanced "its bouquet of products to include mobile handsets and tablets".
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