Blue Label to report increase in half-year earnings

17th February 2021

By: Creamer Media Reporter

     

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JSE-listed Blue Label Telecoms expects a more than 20% increase in earnings for the six months ended November 30.

The group’s basic earnings a share are set to increase 41% to 45% year-on-year to a range between 49.23c and 50.62c apiece for the first six months of the year.

Headline earnings a share are expected to be between 40.16c and 41.76c apiece during the six months under review, a 0% to 4% increase on the 39.98c a share achieved in the corresponding period last year.

Core headline earnings a share are expected to be between 41.84c and 43.56c during the period, compared with the 43.18c a share reported in the six months to November 30, 2019.

“The increase in basic earnings per share was primarily attributable to the disposal of the group’s 47.56% interest in Blue Label Mexico, as well as a positive movement from a negative contribution by the retail division of the WiConnect stores in the comparative period to a partial recoupment of losses in the current period. A decision was made to cease the operations of the WiConnect retail stores in the prior financial year,” the company said in a trading update on February 17.

During the six months to November 30, Blue Label reported the continuance of essential services delivery, including electricity, airtime, data and other digital services, as well as providing financial transactional services, which have not been negatively impacted.

Cash flow generated by the group strengthened, with cash generated from operating activities amounting to R970-million in the current period.

Core headline earnings for the current period under review amounted to R376-million, of which R351-million related to continuing operations and R25-million to discontinued operations.

Excluding non-recurring income pertaining to foreign exchange gains of R22-million, core headline earnings from continued operations amounted to R329-million, equating to core headline earnings of 37.35c a share.

Edited by Creamer Media Reporter

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