Blue Label delivers double-digit FY growth

JSE-listed Blue Label Telecoms on Wednesday posted double-digit increases across the board in the 12 months to May 31, mostly on the back of organic growth.

Headline and core headline earnings a share increased 22% to 100.35c and 21% to 102.85c respectively, while earnings a share rose 20% to 103.85c for the year under review.

Joint CEOs Brett Levy and Mark Levy attributed the year’s financial performance to organic growth, expanding distribution channels and market share gains.

During the year under review, net profit after tax increased 22% to R803-million and gross profit was 11% higher at R1.8-billion.

An increase in earnings before interest, taxes, depreciation and amortisation (Ebitda) of 15% to R1.2-billion was also reported.

Revenue increased 19% to R26.2-billion during the 2016 financial year.

Blue Label’s South African distribution operations posted Ebitda of R1.1-billion, up 9% on the prior year, revenue of R25.7-billion, up 19% on the prior year and a 10% rise in both gross profit and core net profit to a respective R1.6-billion and R751-million.

During the year to May 31, the group’s share of losses in Blue Label Mexico fell 28% to R63-million.

“New initiatives at Blue Label Mexico, including the escalation of starter pack distribution, will contribute to a reduction in losses that have arisen from its aggressive roll-out strategy,” the company noted.

Oxigen Services India shaved off some R27.7-million from Blue Label’s financial results on the back of expenditure incurred on the expansion of its mobile wallet subscriber base.

“Oxigen Services India will focus on enhancing its mobile wallet subscriber base, with increased marketing to the vast unbanked population in India,” Mark Levy said, adding that the active mobile wallet subscriber base increased to 22.6-million during 2016.

Blue Label increased its declared dividend for the year under review by 16% to 36c.