Blue Label Telecoms HEPS up 7% despite revenue decline

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Blue Label Telecoms HEPS up 7% despite revenue decline

The Johannesburg based group specialises in the virtual distribution of electronic tokens and transactional services and has operations in India, Mexico and the United Kingdom.

Gross profit for the half year ended 30 November 2014 also rose ten percent to 710 million rand resulting in earnings before interest, taxes, depreciation and amortization (EBITDA) rising 16 percent to 431 million rand.

“The South African distribution segment remains the predominant contributor to Group earnings. It has achieved this by fortifying its foundation, thereby facilitating its ability to expand its offering into its key distribution channels,” said the company in a statement.

On the international front, their London based operation, Ukash, continued to increase profits while Oxigen Services in India and Blue Label Mexico in Mexico City incurred losses.

“Oxigen Services India is expected to continue to grow the volume of the financial services transactions it facilitates, as it continues to implement strategies of it becoming India’s first non-banked mobile wallet,” added the company.

“Blue Label Mexico will continue to grow its points of presence network in pursuit of its strategy of enhancing its products and service offerings, including transactional revenue.”

The group expects that revenue generated from airtime will remain under pressure for the rest of the financial year.

However, they recently acquired Ticketpros, a ticket provider for mainly premium sporting events in South Africa, which will become the first ticketing engine to launch ticketing purchases on an NFC card or till slip.

“[This] will enhance the product offerings of the Group through its extensive merchant base to include transport, entertainment and expos,” added the company.