Blue Label Telecoms expects big rise in earnings
The company says the increase in earnings is primarily attributable to the disposal of its 47.56% interest in Blue Label Mexico
Prepaid specialist Blue Label Telecoms expects to report earnings growth of more than a third, the result of shedding loss-making operations.
On Wednesday, Blue Label — which specialises in selling prepaid airtime, electricity and ticketing — said its earnings per share were expected to rise up to 45% for the six months to November 2020, translating to a range of 49.23c to 50.62c, compared to 34.83c seen in the previous comparable period.
The company says the increase in earnings is primarily attributable to the disposal of its 47.56% interest in Blue Label Mexico. In 2020, Blue Label Telecoms sold its stake in the Mexico-based company for $11.5m (about R188m at the time) to focus on its SA businesses.
Blue Label’s earnings performance was also helped by the partial recovery of losses from its its recently closed retail unit WiConnect. In the previous financial year, the group shut down WiConnect, which sold smartphones, tablets, gadgets, accessories, airtime, data, event tickets and bus tickets, after months of inactivity brought on by Covid-19.
The group, which is seeking a deal with lenders to recapitalise stricken mobile operator Cell C, said it strengthened its cash position, generating to R970m in the current period from its operations.
Blue Label — headed by brothers Brett and Mark Levy — is expected to release it earnings report for the period on February 24.
In morning trade, shares in Blue Label — up about 113% over the last 12 months — were 2.97% firmer at R5.20.
Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.
Please read our Comment Policy before commenting.