The Group's goal is to enable all consumers to interact and transact on an equal footing
Said Joint CEO’s Brett and Mark Levy, Blue Label Telecoms Limited, on the announcement of the interim financial results for the half year ended 30 November 2013.
Highlights for the half year included the following:
- Headline earnings per share up 7% to 37,15 cents,
- Revenue decline by an effective 1%,
- EBITDA of R431 million up by 16%, supported by gross profit margin increases from 6.80% to 7.82% and a containment of overhead growth to 3%
- Cash resources accumulate to R1,3 billion.
The South African distribution segment remains the predominant contributor to Group earnings, through its dominant position in prepaid airtime and electricity sales. It has achieved this by fortifying its foundation, thereby facilitating its ability to expand its offering into its key distribution channels. It is a reliable aggregator of several suppliers, backed up by a responsive service. Its reputation is one of trust, convenience and clear product leadership.
On the international front, Oxigen Services India and Blue Label Mexico incurred losses, whilst Ukash continued to increase profitability.
In reviewing Prospects for the remainder of the financial year, the Group said:
It expects revenue generated from airtime to come under pressure with an added probability of margin compression.
Ticketpros is a proud partner of premium sporting events in South Africa. Its state-of-the-art technology enhances the product offerings of the Group to now include transport, entertainment and expos.
The acquisition of Retail Mobile Credit Specialists (‘RMCS’), an enhanced service provider of cellular products and services engaged in the supply of telecommunication products and services, content, data and allied activities, will provide access to new channels for the distribution of both RMCS and Blue Label products and services.
Oxigen Services India is expected to continue to grow the volume of the financial services transactions. Blue Label Mexico will continue to grow its points of presence network.
Merchant acquiring has become a reality. This enables consumers to transact at store level through the multitude of point of sale devices that Blue Label has deployed both locally and internationally. Agreements with MasterCard and Absa in South Africa and with Visa and Banamex in Mexico will enable financial inclusion in communities where consumers have historically been unable to use formal payment products.