Blue Label Telecoms has reported a 22% rise in profit to R1.64 billion for for the year ended May 2015, predominantly achieved through access to additional channels of distribution.
Revenue was up 14% to R22 billion, with gross profit rising from 6.96% to 7.46%.
The group reported a 21% rise in headline earnings per share to 82.26 cents, and declared a dividend of 31 cents per share, up 15% from 2014.
Revenue generated on “PINless top-ups” increased by R966 million from R1.7 billion to R2.7 billion. As only the commission earned thereon is accounted for, the effective
growth in group revenue equated to 17%.
Net commissions earned on the distribution of prepaid electricity increased by R31 million to R165 million (23%) on revenue of R10.4 billion generated on behalf of an escalating base of utilities, it said.
Blue Label noted a turnaround of the group’s share of losses of R3.3 million in Oxigen Services India in 2014 to a share of profits equating to R2.6 million in the current year.
This positive turnaround was attributable to increases in revenue by 15% and gross profit by 21%, reported in local currency.
The benefits of Oxigen Services India’s defined strategy of becoming India’s first non-banked mobile wallet that empowers the unbanked masses to instantly transfer
and receive cash across the entire country continues to gain momentum.
This has been primarily due to its focus on money transfer services without detracting from its traditional airtime sales, Blue Label said.
Daily money transfer deposits increased from $2.3 million per day as at 31 May 2014 to $3.3 million per day as at 31 May 2015, this increased exponentially through its connectivity with the National Payment Corporation of India.
Blue Label Mexico’s losses increased to an equivalent of R186 million, of which Blue Label’s share equated to R89 million.
In spite of revenue increasing by 23%, the main reasons for further losses were attributable to continued margin compression and an increase in overhead costs. The increase in overheads was necessitated by the need for enhanced post-sale customer support as well as systems fortification.