Johannesburg, 19 Feb 2008
Blue Label Telecoms (BLT) this morning released interim results that exceeded expectations and beat financial forecasts.
The company released its maiden interim results for the six months ended 30 November 2007, following its listing on the JSE's main board on 14 November.
Group revenue for the period under review was R5.8 billion, with EBITDA of R110.4 million, the company says in a statement. Profit from core operations reached R85 million and the company achieved a net profit of R40.7 million.
Once-off expenses included net of tax of R65.8 million, relating to the management bonus settlement and the termination of a commission agreement.
Headline earnings per share for the half-year were 3.79c and core headline earnings per share were 20.55c.
"The group's successful listing resulted in the raising of cash totalling R1.3 billion. Of this, R570 million was utilised to repay the majority of the group's borrowings and R184 million was paid for the acquisition of minority interests," Blue Label told shareholders in a statement.
The group says it has a strong balance sheet, which is attributable to good trading results, proactive attention to working capital management and significant cash balances.
On 7 November 2007, BLT and Microsoft signed a strategic collaboration agreement to provide each other with mutual assistance in exploring new business opportunities and preferred partnership initiatives across the world's emerging markets.
"Both BLT and Microsoft are pleased with the significant momentum and progress made to date, and are optimistic about extending their relationship going forward to jointly bring technology and value to emerging markets globally," says Blue Label.
"BLT is focused on becoming Microsoft's global touch-point and secure electronic tokens partner."
The company holds 35% of the equity in Oxigen Services India (OSI). In December 2007, it concluded a share sale and subscription agreement, to increase its stake in OSI to 38.85%, subject to Reserve Bank approval, which is still pending.
"This was pursuant to an agreement entered into between BLT, Microsoft and the existing operational partners in terms of which Microsoft simultaneously took up a 38.85% stake in OSI on a sale and subscription basis."
BLT says OSI is incurring losses as it continues to develop its infrastructure, asset base and points of presence across India. The group's share of the loss for the period under review was R6.5 million.
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