Mark Levy, Blue Label CEO.
Johannesburg - Blue Label Telecoms earnings continued to rise, according to the company’s latest financial results for the year ending May 2017.
The company reported a gross profit of 19% to R2.2bn, an increase of 11% to R1.8bn, when compared to the same period in the prior year, with an 11% increase in dividend per share to 40 cents.
The airtime and starter pack seller, which recently acquire a significant share in Cell C, reported a revenue rise to R26.3bn, with an increase in headline earnings per share of 18% to 117.98 cents.
Core headline earnings per share rose by 17% to 120.09 cents with earnings before interest, tax, depreciation and amortisation seeing a 7% increase to R1.3bn.
Blue Label is one of the primary distribution channels for Cell C’s products and services.
“The acquisition therein provides a compelling value proposition to the Group, to Cell C and its customers through vertical integration that will afford both companies the opportunity to realise synergies in product distribution. Cell C now has a sustainable capital structure to deliver on their strategic objectives,” a statement from the company read.
Blue Label Telecoms' prolonged recapitalisation deal to acquire a 45% share in Cell C for R5.5bn reached finalisation and implementation on August 1.