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Blue Label Telecoms profit down 7%

Aug 24 2010 08:43 Reuters

Company Data

Blue Label Telecoms Ltd [JSE : BLU]

Last traded R6.30
Change R-0.09
% Change -1.41%
Cumulative volume 442,759
Market cap R4.25bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Johannesburg - Blue Label Telecoms [JSE:BLU], the South African telecom 12% owned by Microsoft, reported a 7% fall in full-year profit on Tuesday, as sales growth was offset by a writedown at its call centre business.

The company, a reseller of prepaid mobile vouchers, declared a maiden dividend of 12c per share and said it had concluded a reseller agreement with Symantec.

Blue Label Telecoms said in a statement headline earnings per share totalled 48.27c in the year to end-May, compared with 51.63c in the previous year.

The company, which has established distribution channels in Africa and Mexico, said revenue rose 11% to R17bn.

Blue Label Telecoms has benefited from high usage of prepaid cellphones in emerging markets. Blue Label Telecoms and Microsoft each owns a 39% stake in Oxigen India, another reseller of prepaid vouchers.

It said earnings were hit by a writedown related to the negative performance of a call centre unit, and lower interest earned.

The company said it had concluded a reseller deal with US firm Symantec for antivirus software for smartphones.

Shares in the company have dropped 18% this year, underperforming a 1% decline in the JSE All-share index.

 

 
 
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