Substantial growth in its international operations lifted the performance of independent telecommunications group Blue Label Telecoms over the past financial year, says analyst firm Frost & Sullivan.

This growth was primarily achieved through strong growth in Nigeria and disposing of interests in Mozambique and the Democratic Republic of Congo.

Blue Label Telecoms released annual results to 31 May 2010 on Tuesday that revealed an 11% increase in revenue to R17bn and a 21% jump in earnings before interest, tax, depreciation and amortisation to R689m.

Core earnings per share were, however, 6% weaker due to lower interest earned, the reversal of certain deferred tax assets and impairments relating to technology and the negative performance of its call centre business.

“It’s clear international expansion into several key markets is paying off as expected,” says Frost & Sullivan communications technology analyst Protea Hirschel.

“The group has now built a solid base in Nigeria and India from which to continue revenue growth going forward, while judiciously disposing of underperforming assets.”

Revenues from the international distribution segment rose by 72%, from R724,2m last year to R1,3bn for the period under review. The group’s international operations now account for 7,3% of revenues, up from 4,8% in 2009.

This growth should continue, Hirschel says.

The group achieved a 9% growth in revenues in its local distribution segment for the year. This was entirely organic.
Blue Label declared a maiden dividend of 12c/share. — Staff reporter, TechCentral