JSE-listed Blue Label Telecoms has reported an increase in earnings for the six months ended November 30, 2021.

The group’s core headline earnings a share increased to 62.69c apiece during the first half of the year from 42.7c apiece in the corresponding half-year in 2020.

Excluding non-recurring income of R148-million in the period under review and R22-million in the prior corresponding period, core headline earnings a share from continuing operations increased 22% to 45.68c, from the prior half-year’s reported 37.35c apiece.

Core headline earnings for the six months to November 30 amounted to R549-million, of which R548-million related to continuing operations and R1-million to discontinued operations, compared with the core headline earnings of R376-million, of which R351-million related to continuing operations and R25-million to discontinued operations in the six months to November 30, 2020.

Excluding the non-recurring income, headline earnings from continuing operations increased from R329-million in 2020 to R400-million in 2021.

Blue Label said that this growth was indicative of a robust trading performance during the period under review.

During the six months under review, earnings per share (EPS) amounted to 60.71c, of which 60.59c related to continuing operations and 0.12c related to discontinued operations, compared with earnings of 49.92c in the corresponding period in the prior year, of which 46.80c related to continuing operations and 3.12c related to discontinued operations.

Headline earnings per share (HEPS) increased to 60.86c, from 40.96c in the prior period.

EPS and HEPS from continuing operations increased by 24% to 43.69c apiece and 23% to 43.85c apiece respectively, excluding the non-recurring income.

The financial results of WiConnect in the current and prior periods of R1-million and R25-million respectively, are disclosed in core headline earnings from discontinued operations and are not included in the continuing operations' revenue, gross profit, earnings before interest, taxes, depreciation and amortisation, and net profit after tax.

Meanwhile, revenue generated by the continuing operations declined by 5% to R9.1-billion.

As only the gross profit earned on PINless topups, prepaid electricity, ticketing and gaming are recognised as revenue, on imputing the gross revenue generated thereon, the effective growth in revenue equated to 12% from R32.4-billion to R36.2-billion, the company pointed out.

Gross profit for the first half of the year increased 20% to R1.36-billion, with an increase in margins from 11.87% to 14.93%.

During the six months to November 30, 2021, net cash generated from operating activities reached R862-million.

Interest-bearing borrowings were reduced from R2.32-billion in 2020 to R1.97-billion in 2021.