Media release article

Blue Label Telecoms continues to deliver on its growth strategy

Johannesburg, 22 February 2012: Blue Label Telecoms today announced interim results for the half year ended 30 November 2011.

Joint CEO's Brett and Mark Levy said: "We are once again reporting solid growth for the 6 months ended 30 November, as we steadfastly focus on expanding our product range and distribution network, both locally and internationally."

Highlights were:

• Revenue increased by 7% to R9.2 billion.
• Gross profit increased by R71 million to R590 million.
• Overheads were contained at 6% growth.
• EBITDA increased 47% to R438 million, which includes a once-off income receipt of R79,4 million.
• Net profit after tax and non-controlling interest from continuing operations increased by 43% to R275 million. Excluding the once-off income receipt of R79.4 million, the increase was 7%.
• Headline earnings per share increased by 44% from 25,45 cents to 36,74 cents per share. Excluding the once-off income receipt of R79.4 million, the growth was 8%.
• Cash resources increased to R2.3 billion.
• Acquisition of Microsoft's 91,8 million shares in the group for R391 million.

Continued focus on the marketing and distribution of prepaid starter packs is expected to compound existing annuity revenues, whilst commissions generated from prepaid electricity sales on behalf of utilities are expected to increase both organically and through contracts with additional electricity providers.

Blue Label's mobile segment is expected to compound its advertising revenue on bulk prepaid vouchers and point of sale receipt vouchers.

On the international front, a strong foundation in Mexico has been developed for an accelerated roll-out of point of sales devices through the distribution capabilities of Grupo Bimbo, co-shareholder of Blue Label Mexico. 

Oxigen Services India is poised to embark on an aggressive footprint expansion, which will incorporate banking services that will service the vast unbanked population in India.  This initiative is being implemented through associations with several banks in India, including State Bank of India, the largest bank in the country.

The Levy's concluded: "Our balance sheet remains robust and liquid ensuring a solid platform for our growth."