Blue Label Telecoms has reported revenue of R7,6-billion for the six months ended 30 November 2023, with an increase in gross profit of 4% to R1,6-billion (2022: R1,54-billion).

The gross profit margin increased from 15,67% to 21,08%, and core headline earnings for the period ended 30 November 2023 amounted to R420-million, equating to core headline earnings of 47.15 cents per share.

Excluding the positive contributions of R65-million in the current period and the negative contributions of R421-million in the prior period, as illustrated in the underlying tables, core headline earnings declined by R100-million (22%) from R455-million to R355-million and core headline earnings per share declined by 23% from 51.72 cents per share in the prior period to 39.90 cents per share.

This decline in core headline earnings was attributable to a decrease of R119-million in Comm Equipment Company (CEC), while the remaining entities within the group increased by R19-million compared to the prior period.

Group revenue declined by R2,2-billion (23%) to R7,6-billion. However, as only the gross profit earned on “PINless top-ups”, prepaid electricity, ticketing and universal vouchers is recognised as revenue, on imputing the gross revenue generated from these sources, the effective growth in revenue equated to R4,5-billion (12%), resulting in a total revenue of R43,8-billion compared to the prior period of R39,3-billion.

Gross profit increased by R58-million (4%) from R1,54-billion to R1,598-billion, corresponding to an increase in margins from 15,67% to 21,08%. This increase in margins can be partially attributed to the growth in “PINless top-ups”, prepaid electricity, ticketing and universal vouchers, where only the gross profit earned thereon is recognised as revenue.