BLT looks to new financial year of many innovations, growth

BLUE LABEL Telecoms (BLT), which lifted core headline earnings from continuing operations 16 percent to 81.50 cents a share in the year to May 31, was looking forward to another strong performance in the 2022 financial year, the group’s management said yesterday.

BLT also said that its associate, Cell C, had turned in a taxed profit from a massive loss previously, and that the amount due for its recapitalisation – the quantum of which was not yet disclosed – had been secured.

On August 2, 2017, Blue Label, through subsidiary The Prepaid Company, acquired 45 percent of Cell C for R5.5 billion.

As at May 2019, the group’s investment in Cell C was impaired to nil, where it remained as at May 31 this year.

However, yesterday’s results from BLT showed that Cell C generated a net profit of R2.45bn for the year, versus a R10.79bn loss the prior year.

Meanwhile, BLT’s results showed that on exclusion of non-recurring income of R132 million and extraneous costs of R388m the prior year, BLT’s earnings before interest, taxes, depreciation and amortisation (Ebitda) increased by R15m from R1.21bn to R1.23bn.

BLT management said the limited increase in Ebitda was due to an anticipated increase in overheads – which included costs for additional headcount and expenditure on IT Infrastructure – an increase in distribution channels, better capacity in the customer interaction centre, and the implementation of value-added services and financial service strategies.

Gross profit increased to R2.38bn from R2.12bn. Interest-bearing borrowings decreased to R1.7bn from R2.3bn. Net cash generated from operating activities came to R1.5bn versus R1.3bn last year.

On inclusion of the gross amount generated on PINless top-ups, prepaid electricity, ticketing and gaming revenue, the effective revenue increase equated to 10 percent to R66bn from R59.9bn.

BLT shares closed 2.37 percent lower at R5.76 on the JSE yesterday.