{"id":32009,"date":"2013-02-20T08:39:52","date_gmt":"2013-02-20T06:39:52","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=32009"},"modified":"2013-02-20T09:56:13","modified_gmt":"2013-02-20T07:56:13","slug":"blue-label-reports-profit-decline","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/trending\/32009\/blue-label-reports-profit-decline\/","title":{"rendered":"Blue Label reports profit slide"},"content":{"rendered":"

JSE-listed Blue Label Telecoms<\/a>, on Wednesday (20 February) reported a drop in operating profit to R338.65 million for the half year ended November 2012, from R392.31 million before, as its international operations in India and Mexico incurred losses.<\/p>\n

The group recorded headline earnings per share of 34.78 cents, from 36.74 cents in 2011, but revenue improved to R9.47 billion, from R9.25 billion before.<\/p>\n

Blue Label highlighted a 9% rise in gross profit to R644 million.<\/p>\n

Ebitda increased to R372 million equating to a growth of 4%, however, this was on exclusion of a once off income receipt of R79.4 million in the comparative period.<\/p>\n

Blue Label\u2019s core business is the virtual distribution of secure electronic tokens of value (predominantly prepaid airtime at present) and transactional services across its global footprint of touch points.<\/p>\n

Blue Label said that the vending of pinless top ups was introduced as an additional mechanism for the distribution of prepaid airtime during the comparative period.<\/p>\n

\u201cOnly the gross profit earned thereon is included in group revenue as opposed to the gross revenue generated from transactions of this nature. These sales increased from R7 million to R411 million. The inclusion of this revenue in group revenue would effectively result in a growth in total group revenue of 7%,\u201d the group said.<\/p>\n

Blue Label’s South African distribution segment remains the predominant contributor to group earnings.<\/p>\n

On the international front, Ukash<\/a> continued to increase profitability whilst Oxigen Services India (OSI<\/a>) and Blue Label Mexico (BLM) incurred losses.<\/p>\n

Looking ahead, Blue Label said a number of innovative financial services products, aimed at bringing financial inclusion and transactional value to customers, will be launched.<\/p>\n

\u201cThese initiatives will benefit through the utilisation of BLTs mobile systems and the leveraging of the groups extensive distribution network. These additional financial services products complement the groups existing prepaid products and enhance the value-proposition to the merchants and their customers.\u201d<\/p>\n

The group said that recently launched loyalty initiatives are expected to generate revenue through supporter engagement programmes, including communications, events, access-control and concessionary services that enhance service value to supporters.<\/p>\n

These programmes benefit from the latest Near Field Communication and mobile technologies to collect and process data beneficial to the customer experience.<\/p>\n

SMS aggregation is expected to gain further momentum following the development of technology pertaining to this service and a strategic acquisition in this segment of the market, it said.<\/p>\n

\u201cOxigen Services India continues its drive into banking services initiatives in partnership with leading banks and financial institutions,\u201d Blue Label said.<\/p>\n

More on Blue Label Telecoms<\/h3>\n

Blue Label Telecoms acquires local SMS firm<\/strong><\/a><\/p>\n

Blue Label forks out $6.1m for Mexican subsidiary<\/strong><\/a><\/p>\n

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

Blue Label ups profit, lifts dividend<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Blue Label Telecoms has reported a drop in earnings, citing losses in its international operations in India and Mexico.<\/p>\n","protected":false},"author":9,"featured_media":6549,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1382,26],"class_list":["post-32009","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trending","tag-blue-label-telecoms","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/32009","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=32009"}],"version-history":[{"count":8,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/32009\/revisions"}],"predecessor-version":[{"id":32013,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/32009\/revisions\/32013"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/6549"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=32009"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=32009"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=32009"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}