Blue Label joint CEO Brett Levy
JSE-listed Blue Label Telecoms on Wednesday reported double-digit growth for the first half of the 2015 financial year, as its South African distribution division outperformed, setting a positive pace for improved financial performance for the final six months of the year.
The group posted a 15% rise in headline earnings per share (HEPS) to 42.73c, despite losses incurred from Blue Label’s Mexico operations having negatively impacted HEPS by 2.17c, while revenue jumped 14% to R10.3-billion in the six months to November.
For the interim period under review, gross profit was up 11% to R788-million, while the gross profit margin had widened to 7.62% from 7.48% in the first half of the prior financial year.
Blue Label recorded a net profit of R284-million for the period, an increase on the R243-million achieved in the first half of the prior year.
The South African distribution segment posted revenue of R10.15-billion, a 14% rise on the R8.9-billion recorded in the corresponding period the year before.
The local unit’s earnings before interest, taxes, depreciation and amortisation rose 13% to R507-million, while gross profit increased 12% to R696-million.
On the international front, Blue Label narrowed its loss before interest, taxes, depreciation and amortisation by 54% from a loss of R9.8-million in the comparative period the year before to a loss of R4.5-million in the six months to November 2014.
Despite increasing revenue by 20%, Blue Label Mexico registered a loss of around R45-million in the six months under review, on the back of continued margin compression and an increase in overhead costs.
During the first half of the year, the group’s share of losses from its India operations, Oxigen Services, decreased from R3.5-million to R700 000, owing to a 16% rise in revenue and a 36% jump in gross profit.