Blue Label Telecoms has reported a big jump in profits in the year ended 31 May 2015, with headline earnings per share climbing by 21% on the back of an expansion in gross margins from 7% to 7,5%.
Revenue for the year was R22bn, up by 14% on 2014’s number. Earnings before interest, tax, depreciation and amortisation climbed to R1,1bn, up by 37% on last year, helped higher by the proceeds from the disposal of Ukash.
On the back of the strong performance, the company has declared a 31c/share dividend, an increase of 15% over 2014’s payout.
If it hadn’t been for an R89m loss incurred from its share of Blue Label Mexico (R61m a year ago), headline earnings would have been even stronger.
The Indian operation, Oxigen Services India, turned positive during the year, with 2014’s share of losses of R3,3m turning into profits of R2,6m.
“The increase in headline earnings was achieved through organic growth in the South African distribution segment, assisted by the acquisitions of Retail Mobile Credit Specialists and Viamedia,” Blue Label said in a statement to shareholders.
Blue Label’s share price ended trading on Tuesday at R9. The counter has added 10,3% in the past 12 months, giving it a market capitalisation of R6,1bn. — © 2015 NewsCentral Media
