Blue Label Telecoms has increased its headline earnings per share by 15% to 42.73 cents for the six months ended 30 November 2014.
The growth was achieved in spite of the group’s share of losses in Blue Label Mexico increasing by R14,5-million, which negatively impacted on growth in headline earnings per share by 2.17 cents.
The growth in earnings was primarily attributable to increases in revenue of 14%, gross profit of 11% and EBITDA of 20%. Gross profit margins increased from 7,48% to 7,62% on exclusion of imputed IFRS interest adjustments.
The growth in margins was achieved through the efficient application of cash resources to bulk inventory purchases at favourable discounts, early settlement supplier discounts, an increase in commissions earned on the distribution of prepaid electricity and compounding annuity income.
The South African distribution segment continues to be the predominant contributor to group profitability through the expansion of its offerings into its multitude of distribution channels. It is a reliable aggregator for several suppliers, supported by a responsive service. Its reputation continues to be one of trust and reliability.
The recently acquired Retail Mobile Credit Specialists (RMCS) and Viamedia both performed according to expectations in enhancing group profitability.
The secure and safe banking and financial services provided by Oxigen Services India continue to gain momentum with deposits reaching $2,7-million per day at the interim stage. It has become the largest provider in India of domestic money remittances on the Interbank Mobile Payment Service network, a platform provided by the National Payments Corporation of India.
