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Blue Label expects earnings upsurge

Staff Writer
By Staff Writer
Johannesburg, 16 Aug 2016
Blue Label says the earnings rise is attributable to organic growth and an expanded customer base.
Blue Label says the earnings rise is attributable to organic growth and an expanded customer base.

Blue Label Telecoms anticipates full year headline earnings per share (HEPS) to be at least 20% higher than a year ago.

The company has issued a trading statement, for the year ended 31 May 2016, which shows expected HEPS of between 98.71c and 100.36c - which is a 20% to 22% increase compared to 82.26c reported at the end of May 2015.

"The increase in earnings is predominantly attributable to organic growth, underpinned by a hybrid of an expanded customer base supported by an enhanced bouquet of products and services afforded to it. In addition, the group has continued to confine operational costs," Blue Label says in a SENS statement.

It expects core headline earnings per share to rise to between 101.28c and 102.98c - up 19% to 21% year-on-year. Meanwhile, earnings per share are expected to rise at least 18%.

The group's full year results are scheduled to be released on 24 August.

Blue Label is still in talks with Cell C to buy a 35% stake in the telecoms operator for R4 billion.