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.<\/p>\n
Revenue was up 14% to R22 billion, with gross profit rising from 6.96% to 7.46%.<\/p>\n
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.<\/p>\n
Revenue generated on \u201cPINless top-ups\u201d increased by R966 million from R1.7 billion to R2.7 billion. As only the commission earned thereon is accounted for, the effective
\ngrowth in group revenue equated to 17%.<\/p>\n
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.<\/p>\n
Blue Label noted a turnaround of the group\u2019s share of losses of R3.3\u00a0 million in Oxigen Services India in 2014 to a share of profits equating to R2.6 million in the current year.<\/p>\n
This positive turnaround was attributable to increases in revenue by 15% and gross profit by 21%, reported in local currency.<\/p>\n
The benefits of Oxigen Services India\u2019s defined strategy of becoming India\u2019s first non-banked mobile wallet that empowers the unbanked masses to instantly transfer
\nand receive cash across the entire country continues to gain momentum.<\/p>\n
This has been primarily due to its focus on money transfer services without detracting from its traditional airtime sales, Blue Label said.<\/p>\n
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.<\/p>\n
Blue Label Mexico\u2019s losses increased to an equivalent of R186 million, of which Blue Label’s share equated to R89 million.<\/p>\n
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.<\/p>\n
Blue Label lifts interim earnings<\/a><\/strong><\/p>\n