Johannesburg, 22 Aug 2012
21 August 2012 - Blue Label Telecoms today announced results for the year ended 31 May 2012.
Joint CEOs Brett and Mark Levy said: "We can again report another year of growth, driven by our expanding product and services range into a growing distribution network, both locally and internationally."
Highlights were:
Revenue increased by 4% to R18.7 billion
13% increase in gross profit to R1.2 billion
26% EBITDA increase to R756 million*
40% increase in headline earnings per share to 64,65 cents*
Cash generated from operating activities totalled R528 million
Share buyback of 91.8 million shares absorbed R392 million
Dividend up 64% to 23 cents per share
* includes the once-off confidential receipt of R79.4 million
The South African distribution segment was again the predominant contributor to group profitability.
On the international front, Oxigen Services India delivered a profit, mainly through its increasing shift to providing additional financial service offerings. Blue Label Mexico's distribution capabilities accelerated, in partnership with Grupo Bimbo. The costs of gearing up infrastructure in support of the rollout of point-of-sale devices continues to weigh on the business in Mexico.
Looking forward, the group is expecting that annuity revenue from its expanding starter pack base will continue to grow. It is also building up its SMS aggregation capabilities through its own product development as well as through strategic acquisitions. Growing customer awareness of the benefits of prepaid electricity and through additional contracts with utilities are expected to enhance electricity commissions received. Internationally, distribution capabilities in Mexico are likely to add momentum to the rollout of point-of-sale devices, and Oxigen Services India is expected to continue its drive into banking services. The group will continue its focus on expanding its product range offering and distribution network, organically and through acquisition.
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