Blue Label earnings to increase
In a trading update released on SENS on 12 August 2009, Blue Label Telecoms advised its shareholders that its core earnings per share for the year ended 31 May 2009 would increase by 12% to 17% in comparison with its core earnings per share for the comparative year ended 31 May 2008.
This means that core earnings would be in the range of R416 million to R434 million as compared to the R371 million earned in the prior financial year.
In compliance with the JSE’s requirements, the announcement on SENS this morning contains a number of earnings categories. Joint CEO’s Brett and Mark Levy said that they regard core earnings as the best measure of the group’s performance.
According to the joint CEO’s “the increase in earnings is predominately the product of organic growth, attributable to the following factors:
- growth in local and international revenue due to increased market penetration;
- increased revenue attributable to an expansion in the range of secure electronic tokens of value and other services;
- increased revenue from annuity income streams;
- economies of scale derived from strategic and operational integration.”
The growth in earnings was achieved notwithstanding the challenging economic climate and a substantial increase in budgeted expenditure.
According to the Levy brothers the group has made significant investments in the development of its technology, in the expansion of its transactional footprint and the diversification of its products and services.
They stated that these investments will enhance the distribution capabilities of the group and will enable the group to strike a balance between improving earnings year on year, whilst investing to achieve sustainable future growth.
Blue Label earnings discussion
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