Blue Label reports dip in revenue

Blue Label Telecoms on Friday published its results for the six months ended November 2020, showing a 15% slide in revenue to R9.6 billion.

Gross profit declined by 3% from R1.17 billion to R1.14 billion, partially limited due to an increase in margins from 10.33% to 11.87%.

Despite the impact of Covid-19 and general economic challenges, core headline earnings for the period ended November 2020 amounted to R376 million (-4%), equating to core headline earnings of 42.70 cents per share, of which R351 million related to continuing operations and R25 million to discontinued operations.

On exclusion of non-recurring income pertaining to foreign exchange gains of R22 million, core headline earnings from continued operations amounted to R329 million, equating to core headline earnings of 37.35 cents per share, Blue Label said.

Earnings per share and headline earnings per share increased from 34.83 and 39.98 cents per share in the comparative period to 49.92 and 40.96 cents per share respectively in the current period, the group said.

The increase in basic earnings per share was primarily attributable to the disposal of Blue Label’s 47.56% interest in Blue Label Mexico as well as a positive movement from a negative contribution by the retail division of the WiConnect stores in the comparative period to a partial recoupment of losses in the current period.

A decision was made to cease the operations of the WiConnect retail stores in the prior financial year.

Read: Blue Label Telecoms sees slight earnings improvement

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Blue Label reports dip in revenue