"Further growth in our financial performance as we continue investing in our distribution channels, expanding our footprint and increasing our products and services range"

20 August 2014

Said Brett Levy and Mark Levy, the joint CEO's of Blue Label Telecoms Limited, on the announcement of the annual financial results for the year ended 31 May 2014.

Highlights for the full year included the following:

Increase in gross profit by R78 million to R1.35 billion
Increase in gross profit margins from 6,70% to 6,96%
Increase in headline earnings per share of 6% to 67,98 cents,
Increase in EBITDA by 10% to R788 million, on revenue growth of 2% to R19,4 billion,
Cash resources accumulated to R1,2 billion, of which R907 million was generated from operating activities,
Dividend declared of 27 cents per share

Revenue generated on "pinless top ups" increased from R997 million to R1,7 billion. As only the commission thereon is accounted for, the effective growth in Group revenue equated to 6%. Commission earned on the distribution of prepaid electricity equated to R133 million, up 17%, on sales generated on behalf of utilities escalating to R8.8 billion. 

On the international front, the Group's share of  losses amounting to R57 million was mainly attributable to Blue Label Mexico, as it continues its strategic roll out of point of sale devices on a national scale, the benefits of which are expected to materialise in the future. 

Looking forward, the Group is expecting the recent acquisitions of RMCS and Via Media to enhance profitability and to afford the Group access to new channels of distribution. The Group's propensity to generate positive cash flows will facilitate acquisition and trading opportunities, as well as continued dividend distributions. Oxigen Services India's mobile wallet, which facilitates instant money transfers, is expected to gain momentum.




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