{"id":22148,"date":"2012-09-14T12:46:31","date_gmt":"2012-09-14T10:46:31","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=22148"},"modified":"2012-09-14T13:09:57","modified_gmt":"2012-09-14T11:09:57","slug":"blue-label-forks-out-6-1m-for-mexican-subsidiary","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/telecommunications\/22148\/blue-label-forks-out-6-1m-for-mexican-subsidiary\/","title":{"rendered":"Blue Label forks out $6.1m for Mexican subsidiary"},"content":{"rendered":"

Blue Label Telecoms<\/a> has extended its financial assistance to Blue Label Mexico to $6.1 million.<\/p>\n

In its most recent results presentation last month (August 2012), for the year ending May 2012, Blue Label said that, whilst Blue Label Mexico\u2019s footprint expansion initiatives had accelerated at a vast rate through the Grupo Bimbo<\/a> distribution network, the costs of gearing up infrastructure in support of the roll out of point of sale devices resulted in BLM incurring additional losses in the reporting period.<\/p>\n

Blue Label Mexico commenced trading operations in August 2009. The current ownership structure is 40% Blue Label Telecoms Limited, 40% Grupo Bimbo SA de CV, and 20% Nadhari SA de CV.<\/p>\n

Blue Label said in a statement on Friday (14 September) that the board of directors concluded that the company in Mexico satisfied the solvency and liquidity test.<\/p>\n

\u201cThe loan was advanced to fund the company\u2019s pro-rata contribution towards the working capital\u00a0requirements of Blue Label Mexico,\u201d it said.<\/p>\n

Blue Label has endured mixed fortunes in its operations outside of South Africa. In August, the group said that Oxigen Services India<\/a> had become a profitable entity for the first time in nearly a decade.<\/p>\n

In Nigeria, Blue Label had its Multi-links contract cancelled in November 2010; however, it continues to incur losses.<\/p>\n

The group is currently in an arbitration process to claim $481 million in lost profits from Telkom\u2019s former Nigerian subsidiary.\u00a0The arbitration has been set down for hearing from 4 November until 15 December 2012.<\/p>\n

Blue Label recently\u00a0reported a modest rise in revenue to R18.72 billion\u00a0for the year ending May 2012, \u00a0from R18.06 billion previously.<\/p>\n

Operating profit improved to R658.92 million, from R451.75 million in 2011, while headline earnings per share increased by 40% from 46.20 cents to 64.65 cents.<\/p>\n

However, the board approved a gross ordinary dividend of 23 cents per ordinary share, from a dividend of 14 cents in 2011.<\/p>\n

Looking ahead, in Mexico, Blue Label said: \u201cThe distribution capabilities of Grupo Bimbo, the largest bakery in the world, are expected to add significant momentum to the roll-out of point of sale devices in Mexico.\u201d<\/p>\n

In noon trade on the JSE on Friday, shares in Blue Label advanced 15 cents, or 2.34%, to R6.55; however, the All Share Index climbed 1.70% to 36,495 points.<\/p>\n

Related article<\/strong><\/p>\n

Blue Label Telecoms to sponsor Proteas<\/strong><\/a><\/p>\n

Blue Label abandons bank license idea<\/a><\/strong><\/p>\n

Blue Label ups profit, lifts dividend<\/a><\/strong><\/p>\n

Blue Label FY results preview<\/a><\/strong><\/p>\n

R79.4 million secret payment \u2013 where did it come from?<\/a><\/strong><\/p>\n

Blue Label highlights extraneous transaction<\/a><\/strong><\/p>\n

Blue Label talks up cash resources<\/a><\/strong><\/p>\n

Blue Label new connections target on track<\/a><\/strong><\/p>\n

Blue Label reports 44% jump in H1 HEPS<\/a><\/strong><\/p>\n

Blue Label Telecoms eyeing M&As in 2012<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Blue Label Telecoms has extended its financial assistance to Blue Label Mexico to $6.1 million. <\/p>\n","protected":false},"author":9,"featured_media":22151,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[21],"tags":[3898,1382,4128,26],"class_list":["post-22148","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecommunications","tag-blue-label-mexico","tag-blue-label-telecoms","tag-grupo-bimbo","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/22148","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=22148"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/22148\/revisions"}],"predecessor-version":[{"id":22153,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/22148\/revisions\/22153"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/22151"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=22148"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=22148"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=22148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}