https://www.engineeringnews.co.za
Africa|Environment|Financial|Power|Equipment
Africa|Environment|Financial|Power|Equipment
africa|environment|financial|power|equipment

Blue Label H1 core earnings up

22nd February 2024

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

Font size: - +

JSE-listed Blue Label Telecoms on Thursday posted core headline earnings of R420-million, equating to core headline earnings per share (HEPS) of 47.15c for the six months ended November 30, 2023.

Comparatively, core headline earnings during the prior corresponding period last year amounted to R35-million, equating to core HEPS of 3.94c, as Cell C and its recapitalisation transaction dragged the November 2022 basic, headline and core HEPS.

Blue Label’s financial results for the first half of the year outlined that, excluding positive contributions of R65-million in the current six-month period and negative contributions of R421-million in the prior period, core headline earnings declined from R455-million to R355-million, while core HEPS declined 23% from 51.72c in the prior corresponding period to 39.90c.

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

“The anticipated decline in CEC’s core headline earnings was a result of a decline in gross profit stemming from increased expenditure related to the distribution agreement, as well as a significant increase in the expected credit loss compared to the previous period,” Blue Label said, noting that the increase aligns with the expansion of CEC’s book and the deteriorating macroeconomic environment in South Africa, marked by rising interest rates, power outages and a depreciating rand.

Meanwhile, Blue Label’s earnings per share (EPS) for the current period amounted to 45.67c from a loss of 8.74c in the prior period.

“On the exclusion of the contributions resulting primarily from the recapitalisation transaction of Cell C from both the current and prior periods, EPS declined by 23% to 38.42c and HEPS declined by 22% to 38.66c.”

Group revenue declined by R2.2-billion to R7.6-billion; however, imputing the gross revenue generated from “PINless top-ups”, prepaid electricity, ticketing and universal vouchers, the effective growth in revenue equated to R4.5-billion, resulting in total revenue of R43.8-billion, compared with R39.3-billion in the prior corresponding period.

During the six months to November 2023, gross profit increased from R1.54-billion to R1.59-billion, corresponding to an increase in margins from 15.67% to 21.08%, which can be partially attributed to the growth in “PINless top-ups”, prepaid electricity, ticketing and universal vouchers.

Edited by Creamer Media Reporter

Comments

Array

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
SABAT
SABAT

From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (12/04/2024)
12th April 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.071 0.125s - 139pq - 2rq
Subscribe Now