Blue Label reports 44% jump in H1 HEPS
Blue Label Telecoms on Wednesday announced a 44% rise in headline earnings per share to 36.74 cents for the half year ended November 2011, from 25.45 cents before.
Revenue improved to R9.25 billion, from R8.64 billion, with operating profit up to R392.3 million, from R251.81 million.
The group announced a dividend per share of 14 cents, from 12 cents in 2010.
Blue Label Telecoms said that profitability was enhanced by a once-off other income receipt of R79.4 million.
EBITDA increased by 47%,and net profit for the period increased by 41% to R272 million.
On the International front, Blue Label said that the negative impact caused by the closure of the Africa Prepaid Services Nigeria operation, manifested itself in a turnaround of a comparative profit contribution of R6.9 million – to a negative contribution of R3.1 million in the current period.
Ukash contributed an effective increase in profitability, whilst Oxigen Services India (Oxigen) and Blue Label Mexico continued to incur losses.
“A strong foundation in Mexico has been developed for an accelerated roll-out of point of sale devices through Grupo Bimbo’s distribution capabilities,” the group said.
It added that financial inclusion services in India are gaining momentum, as an additional offering to the vast footprint that has been established by Oxigen.
Looking ahead, Blue Label said that continued focus on the marketing and distribution of prepaid starter packs is expected to compound existing annuity revenues.
Commissions generated from prepaid electricity sales on behalf of utilities are expected to continue to increase both organically, and through contracts with additional electricity providers. Consumer awareness of this payment mechanism is becoming more prevalent in this arena.
“The mobile segment is expected to compound its advertising revenue on bulk printed prepaid vouchers and point of sale receipt vouchers, following its sound entry into this space during the reporting period,” it said.
The distribution capabilities of Grupo Bimbo are expected to filter down to a significant gain in the momentum of the roll-out of point of sale devices. Since the commencement of this strategic alliance with them in March 2011, the roll-out of point of sale devices has increased at an exponential rate.
Blue Label said that Oxigen has developed a robust foundation, and is poised to embark on an aggressive foot print expansion which will incorporate banking services that will service the vast unbanked population in India. This initiative will be implemented through associations with several banks in India, including State Bank of India, the largest bank in that country.
“The strategic alliance established with Mobilitrix, is expected to accelerate growth in loyalty and mobile couponing services, in order to strengthen customer retention and incentive capabilities. This will be supported by the best of breed technology, providing an end-to-end mobile reward service to retailers, manufactures and media companies,” it concluded.
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