Blue Label to report more than 20% jump in earnings
Prepaid airtime and electricity distributor Blue Label Telecoms said on Monday it will report a more than 20% rise in earnings when it releases its financial results for the six months to November 2019 on Friday.
Blue Label said core headline earnings for the current period amounted to R390m, including non-recurring one-off expenditure of R61m at its retail division, as well as a fair value loss on a put-option liability for the acquisition of the remaining 40% minority share of Airvantage and AV Technology, which will be settled during 2020.
Core headline earnings per share for the group will be between 42.61c and 43.75c, up from a loss of 11.39c per share to November 2018.
The company expects headline earnings per share at between 39.24c and 40.74c from a loss in the same period a year ago of 15.02c, it said in the updated trading statement.
The group, headed by brothers Brett and Mark Levy, is mobile operator Cell C’s largest shareholder.
Cell C’s declining fortunes had resulted in both Blue Label and Net1 writing down their combined R7.5bn investment in the operator to nil. Because of this Cell C did not have an impact on its earnings, and accounts for the swing into positive territory.
Shares in Blue Label closed 1.89% weaker on Monday at R2.59 per share.