Blue Label Telecoms' Growth Drive Continues
21 August 2012Johannesburg, 21 August 2012: Blue Label Telecoms today announced results for the year ended 31 May 2012.
Joint CEO's Brett and Mark Levy said: "We can again
report another year of growth, driven by our expanding
product and services range
into a growing distribution network, both locally and
internationally."
Highlights were:
- Revenue increased by 4% to R18.7 billion
- 13% increase in gross profit to R1.2 billion
- 26% EBITDA increase to R756 million*
- 40% increase in headline earnings per share to 64,65 cents*
- Cash generated from operating activitiestotalled R528 million
- Share buyback of 91,8 million shares absorbedR392 million
- Dividend up 64% to 23 cents per share
* includes the once-off confidential receipt of R79,4 million
The South African Distribution segment was again thepredominant contributor to group profitability.
On the international front, Oxigen Services India delivered a
profit, mainly through its increasing shift to providing
additional financial
service offerings. Blue Label Mexico's distribution
capabilities accelerated, in partnership with Grupo Bimbo.
The costs of gearing up infrastructure in support of the
roll-out of point of sale devices continues to weigh on the
business in Mexico.
Looking forward the group is expecting that annuity revenue
from its expanding starter pack base will continue to grow.
It is also building up its SMS aggregation capabilities
through its own product development as well as through
strategic acquisitions. Growing customer awareness of the
benefits of prepaid electricity and through additional
contracts with utilities are expected to enhance electricity
commissions received. Internationally, distribution
capabilities in Mexico are likely to add momentum to the
roll-out of point of sale devices and Oxigen Services India
is expected to continue its drive into banking services. The
group will continue its focus on expanding its product range
offering and distribution network, organically and through
acquisition.
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