Blue Label expects positive turn in six-month results

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Blue Label Telecoms joint-CEOs Mark and Brett Levy.
Blue Label Telecoms joint-CEOs Mark and Brett Levy.

JSE-listed telecoms group Blue Label Telecoms is expecting headline earnings per share to surge up to 4% for the six-month reporting period ended 30 November 2020.

Updating shareholders on Wednesday, Blue Label said the group’s core headline earnings for the current period amounted to R376 million, of which R351 million is related to continuing operations and R25 million to discontinued operations.

On exclusion of non-recurring income pertaining to foreign exchange gains of R22 million, core headline earnings from continued operations amounted to R329 million, equating to core headline earnings of 37.35c per share.

Blue Label says the increase in basic earnings per share was primarily attributable to the disposal of the group’s 47.56% interest in Blue Label Mexico, as well as a positive movement from a negative contribution by the retail division of the WiConnect stores in the comparative period, to a partial recoupment of losses in the current period.

The company, which is also the largest shareholder of Cell C, says the performance of the Blue Label Group remains resilient in an adverse economic environment.

“Inspite of the COVID-19 pandemic, the group has continued to deliver essential services, including electricity, airtime, data and other digital services, as well as providing financial transactional services, which have not been negatively impacted. Cash flow generated by the group strengthened, with cash generated from operating activities amounting to R970 million in the current period.”

Blue Label joint-CEOs, Mark and Brett Levy, will present the group’s latest financial performance next week.

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