Blue Label lifts dividend by 8%

Blue Label Telecoms, on Tuesday (20 August), reported an 8% rise in its dividend per share to 27 cents for the period ended May 2014, on the back of a rise in profits.

Revenue improved to R19.4 billion, from R18.98 billion before, while group operating profit was up to R723 million, from R646 million in 2013.

Headline earnings per share was up 6% to 67,98 cents, while the group saw a 10% increase in earnings before interest, taxes, depreciation, and amortisation (ebitda) to R788 million.

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%.

The share of net losses of R57 million from associates and joint ventures was mainly attributable to Blue Label Mexico.

Expenditure incurred by Blue Label Mexico on the roll out of point of sale devices on a national scale is in line with its strategy to enhance its product and service offerings, the benefits of which are expected to materialise in the future, the group said.

In April 2014, Blue Label acquired Retail Mobile Credit Specialists, an enhanced service
provider of telecommunication products and services, content, data and allied activities, via physical and virtual mediums.

Looking ahead, the group said that the growth in prepaid electricity meter roll-outs, is likely to continue and improve future group revenue.

TicketPros, a ticketing provider and proud partner of premium sporting events in South Africa, continues to expand its service offering to a myriad of events and activities.

“The group’s distribution footprint is perfectly positioned to offer a money transfer solution that provides reach across all sectors of the South African economic landscape,” Blue Label said.

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Blue Label lifts dividend by 8%