Shareholders in Blue Label Telecoms can expect to be pleased with the company's anticipated performance in its coming results set.
The company released a trading statement reflecting a 62% to 70% increase in earnings. “The growth in earnings was achieved notwithstanding the challenging economic climate and a substantial increase in budgeted expenditure,” the company explains.
Blue Label attributes the expected growth to increases in local and international market penetration, leading to higher revenue. It says it has also increased income from annuity-based streams, helping the company boost its financials.
It has remained largely untouched by the global financial downturn, posting good results in February when it reported its half-year financials. It then showed a revenue increase of 23%, to R7.6 billion, and an EBITDA increase of 28%, to R296 million.
The company also indicated its first dividend would be declared in the coming year-end results.
Some concerns about the company's heavy reliance on interest rates were also addressed at the company's half-year results in February, when it indicated it had set enough aside to combat a 4% decrease in the rate. Since February, the interest rate has dropped by 3%.
Blue Label will release its results later this month.
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