JSE-listed Blue Label Telecoms, which is in the process of acquiring a 35% interest in Cell C, on Tuesday reported a 25% increase in revenue to R12.9 billion for the half year ended November 2015.
The group said that despite a challenging economic environment, it delivered an encouraging performance, resulting in growth in headline earnings per share of 25% to 53.26 cents.
Operating profit was up to R573 million, from R469.5 million before.
Blue Label said its performance was underpinned by an expanding distribution channel and in turn a growth in market share.
The group is a distributor of secure electronic tokens, and airtime vouchers for the country’s mobile operators.
In December Blue Label put in an offer to purchase 35% of Cell C for R4 billion, as part of the recapitalisation of South Africa’s third largest mobile network.
- Increase in gross profit of 17% to R919 million
- Increase in EBITDA of 20% to R620 million
- Increase in headline earnings per share of 25% to 53.26 cents
- Increase in headline earnings of 25% to R355 million
- Increase in cash and cash equivalents by R694 million to R1.5 billion
On the international front, Blue Label said that its share of losses in Blue Label Mexico (BLM) declined by 28%, albeit equating to a share of losses of R32.5 million.
This impacted negatively on headline earnings per share by 4.88 cents.
It said that Oxigen Services India has remained profitable from year-end, focusing on expanding a valuable mobile wallet subscriber base.
Looking ahead, Blue Label said that Oxigen Services India will continue to focus on enhancing its mobile wallet subscriber base.
“It is the intention of the company to perpetuate its marketing of the benefits of prepaid wallets to the vast unbanked population of India,” Blue Label said.
The decline in losses incurred by Blue Label Mexico is expected to continue in line with its roll-out of prepaid starter packs, which is gaining momentum on a monthly basis, the company said.
In South Africa, Blue Label said that it distribution has enhanced its bouquet of products to include mobile handsets and tablets.
“Low cost smart phones are expected to reach a wider spectrum of consumers which in turn will enhance the sale of prepaid tokens of value,” it said.