Blue Label Telecoms' investment in Mexico has again come in at a loss, dragging down headline earnings per share in the interim period by 2.17c.
Apart from this negative - which amounted to a R14.5 million loss - the company managed to boost headline earnings per share 15% to 42.73c. This came as it bolstered revenue 14% to R13 billion in the six months to November.
Blue Label reported an increase in gross profit of 11% to R788 million, and its gross profit margins moved from 7.48% to 7.62%. Core earnings per share gained 17% to 44.47 cents.
At the end of the previous year, Blue Label recorded a net loss of R57 million, mostly due to its stake in Blue Label Mexico, which has been investing to expand its points of presence. This cost headline earnings per share 9c, which came in at 67.98c.
Blue Label anticipates growth ahead through its Indian unit, as well as its local TicketPros offering and a move towards more prepaid services in SA, such as water.
The listed company's South African distribution operation continues to be the biggest contributor to group profitability as it has expanded its offerings into its multitude of distribution channels. Blue Label provides prepaid products such as electricity and cellphone vouchers through its network.
Blue Label notes its recently acquired Retail Mobile Credit Specialists and Viamedia units "performed according to expectations in enhancing group profitability".
Retail Mobile Credit Specialists provides telecommunication products and services, content, data and allied activities, while Viamedia is a mobile content and value-added services provider. Both these deals, concluded last year, will enhance its profitability, and give it access to new distribution channels.
Its Indian operation, which provides banking and financial services through Oxigen Services India, continues to gain momentum, with deposits reaching $2.7 million a day by the end of the period.
"It has become the largest provider in India of domestic money remittances on the Interbank Mobile Payment Service network, a platform provided by the National Payments Corporation of India."
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