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Blue Label Telecoms has reported a headline earnings per share (HEPS) increases of 22% to 100.35 cents, for the year ended 31 May 2016.
Earnings per share increased 20% to 103.85 cents, and a dvidend declared increase of 16% to 36 cents per share.
Revenue grew by 19% to R26,2-billion, gross profit increased by 11% to R1,8-billion, and EBITDA rose by 15% to R1,2-billion.
According to Brett Levy and Mark Levy, joint CEOs of Blue Label Telecoms, the group’s performance was primarily attributable to organic growth, underpinned by an expanding multitude of distribution channels, and in turn a growth in market share.
Prospects for the year ahead include:
* Participation in the recapitalisation of Cell C by way of subscription of shares is progressing positively. Management is of the opinion that the transaction is compelling both from an investment and commercial perspective.
* The group is well positioned to meet the increased demand for low cost smart phones and tablets, through its extensive distribution network in South Africa and beyond its borders.
* The distribution of prepaid electricity will continue to grow, through enhanced government initiatives to roll out additional prepaid electricity meters throughout South Africa.
* New initiatives at Blue Label Mexico, including the escalation of starter pack distribution, will contribute to a reduction in losses that have arisen from its aggressive rollout strategy.
* Oxigen Services India will focus on enhancing its mobile wallet subscriber base, with increased marketing to the vast unbanked population in India. This will result in growth in transactional revenue and the intrinsic value of the wallet subscriber base, which has accumulated to 22,6-million active wallets at present.