Johannesburg, 20 Feb 2013
"We continue to focus on diversifying our range of products and services, and expanding our distribution footprint by growing our business organically and through strategic acquisitions."
This was said by Joint CEOs Brett and Mark Levy, Blue Label Telecoms, on the announcement of the results for the half-year ended 30 November 2012.
Highlights for the half year included the following:
* Headline earnings per share increased by 26%, after excluding a once-off income receipt in the comparative period*.
* Decline in headline earnings per share by 5%, after including the once-off income receipt in the comparative period*.
* Increase in revenue to R9.5 billion.
* Increase in gross profit to R644 million
* Increase in gross profit margins by 0.42% to 6.80%
* Partnerships key in delivering growth: In South Africa, with the mobile network operators; the State Bank of India; and Grupo Bimbo in Mexico.
* Once-off income receipt amounted to R79.4 million
The South African Distribution segment was the predominant contributor to group profitability.
On the international front, Oxigen Services India continues adding versatile payment solutions to its telecoms recharge platform, while building additional capacity particularly for serving the un-banked in rural India. Blue Label Mexico's distribution capabilities accelerated at a rapid rate, as it continued rolling-out sophisticated points of sale devices across the country.
Looking forward, the group plans the launch of a number of innovative financial services products. Recently launched loyalty programme initiatives are expected to generate revenue through supporter engagement programmes. SMS aggregation and distribution capabilities are expected to gain further momentum. Consumer awareness of the benefits of prepaid electricity is expected to continue, and in turn will impact favourably on commissions earned. Oxigen Services India is expected to continue its drive into banking services in partnership with leading banks and financial institutions.
The group's financial position remains robust and liquid, which bodes well for future growth, acquisitions and distributions to shareholders.
Please refer queries to:
Michael Campbell
Investor and Media Relations
Blue Label Telecoms Limited
T: (011) 523 3101/(082) 458 2587
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