| Blue Label Telecoms Limited: audited consolidated annual financial results for the year ended 31 May 2024 |
| FINANCIAL RESULTS |
- Revenue of R14.6 billion*
- Decrease in gross profit of 5% to R3.3 billion (2023: R3.48 billion)
- Increase in gross profit margin from 18.41% to 22.57%
- Core headline earnings of 76.08 cents per share** (2023: 45.55 cents per share)
|
| * On inclusion of the gross amount generated on "PINless top-ups", prepaid electricity, ticketing and universal vouchers, the effective increase equated to 16% from R76.8 billion to R89.3 billion. ** Excluding the positive contributions of R66 million in the current year and the negative contributions of R523 million in the prior year,primarily resulting from the recapitalisation transaction of Cell C, core headline earnings per share declined by 34% to 68.66 cents per share compared to 104.83 cents per share in the prior year. |
| Group results: |
| Group revenue declined by R4.3 billion (23%) to R14.6 billion. However, as only the gross profit earned on "PINless top-ups", prepaid electricity, ticketing and universal vouchers is recognised as revenue, on imputing the gross revenue generated from these sources, the effective revenue growth equated to R12.5 billion (16%), resulting in a total revenue of R89.3 billion compared to the prior year of R76.8 billion. |
| Gross profit decreased by R188 million (5%) from R3.483 billion to R3.295 billion. The decline was mitigated by an increase in the gross profit margin from 18.41% to 22.57%. This increase in margins can be partially attributed to the growth in "PINless top-ups", prepaid electricity, ticketing and universal vouchers, where only the gross profit earned thereon is recognised as revenue. |
| The Group remains vigilant in managing its total overhead costs. |
| EBITDA declined by R258 million (18%) from R1.463 billion to R1.205 billion, excluding the positive contributions of R20 million in the current year and negative contributions of R146 million in the prior year. Of this decline, Comm Equipment Company Proprietary Limited (CEC) showed a negative impact of R368 million, while the remaining Group operations contributed an additional R110 million compared to the previous year. |
| Core headline earnings for the year ended 31 May 2024 amounted to R679 million, equating to core headline earnings of 76.08 cents per share. In the comparative year, core headline earnings amounted to R402 million, equating to core headline earnings of 45.55 cents per share. |
| The predominant negative contributions to the May 2023 basic, headline and core headline earnings per share are primarily associated with the recapitalisation transaction of Cell C. |
| Excluding the positive contributions of R66 million in the current year and the negative contributions of R523 million in the prior year, as illustrated in the underlying tables, core headline earnings declined by R312 million (34%) from R925 million to R613 million and core headline earnings per share declined by 34% from 104.83 cents per share in the prior year to 68.66 cents per share. This decline in core headline earnings was attributable to a decrease of R188 million in CEC, while the remaining entities within the Group declined by R124 million compared to the prior year. |
| For the full document click the link below:
Blue Label Telecoms Limited |
