Blue Label Group on Thursday reported a marginal rise in revenue of 2% to R13.5 billion for the interim financial period ended November 2017.<\/p>\n
The group, which in August 2017, acquired 45% of\u00a0 Cell C and 47.37% of 3G Mobile for R5.5 billion and R900 million respectively, reported a rise in operating profit to R717.8 million, from R660 million before, while net profit increased to R1.4 billion, from R564 million in 2016.<\/p>\n
Additional reporting highlights were as follows:<\/p>\n
Blue Label said that core headline earnings for the six months ended November 2017 amounted to R1.36 billion, resulting in an increase\u00a0 of R804 million (146%).<\/p>\n
Post-dilution resulting from the issue of 200 million shares at R15 per share, core headline earnings per share increased by 108% to 168.42 cents per share.<\/p>\n
These earnings comprised the group’s share of profits in Cell C of R928 million, which included the recognition of\u00a0 an increase in a deferred tax asset of R1.92 billion, of which the group’s 45% share amounted to R865 million and its\u00a0 share of profits in 3G Mobile of R36 million.<\/p>\n
Blue Label said its share of losses in Blue Label Mexico continued to decline from R22.1 million to R10.5 million (52%) over the period.<\/p>\n
Looking ahead, Blue Label\u00a0 said it will focus on further penetration into the informal market through the provision of point of sale devices to the multitude of independent traders.<\/p>\n
“Blue Label is one of the primary distribution channels for Cell C products and services. Our investment in Cell C provides a compelling value proposition to the group, to Cell C and its customers, through vertical integration\u00a0 that will afford both companies the opportunity to realise synergies in product distribution.<\/p>\n
“Cell C now has a\u00a0 sustainable capital structure to deliver on their strategic objectives,” it said.<\/p>\n