Blue Label Telecoms' international operations boomed in the six months ended 30 November 2009.
The company released its financial results for the period this morning, sporting relatively strong numbers, despite a marginal slow down in the South African market. Revenue in the international distribution segment shot up from R283 million, to R674 million.
The company has operations in the Democratic Republic of Congo, Nigeria, Australia, Mexico, India, the UK and other parts of Europe.
Blue Label says the Mozambican operation was included in the group's international results; however, it has since sold off its assets in that country.
Blue Label says some of the success internationally can be attributed to the sale of its Mozambican interests, with the rest found entirely in the success of Africa Prepaid Services, in Nigeria.
Nigeria follows SA as an operator's dream country, serving millions of mobile and fixed-line subscribers. Blue Label was always expected to do well in distribution in that country. The organisation signed an exclusive agreement last year with Telkom's MultiLinks, in Nigeria, to distribute prepaid airtime on the company's behalf.
The company's operation in India still faces an uphill battle. Oxigen Services India seems to have plugged most of its holes, but continues to bleed financially - this year totalling R4.6 million. Compared with historic losses, the company is looking far better, and investors will be pleased with its progress.
Despite the exciting international prospects, both group operations and the South African arm seem to be slowing. Compared with the same period last year, when the group was looking at a 23% growth in revenue, it is now sitting on 11% growth.
Profits, however, are strong at a 24% increase, meaning Blue Label kept its operational spend in check.
The company traditionally runs a tight margin ship, with airtime resale not an exceptional margin driver. Blue Label says it has increased its margins, through new products it has unveiled across its operations.
The company will reveal more details during an interview with ITWeb this afternoon.
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