Blue Label expects slight uplift in headline earnings
Blue Label Telecoms will report slight growth in headline earnings per share of between 0% an 4% for the six-month reporting period ended 30 November 2020.
In a trading statement on Wednesday, the group – which owns 45% of Cell C, and to which it has attached a nil carrying value – said basic earnings per share will rise by between 41% and 45%, mainly because of the sale of its 47.6% stake in Blue Label Mexico and its decision a year ago to cease operations of its WiConnect retail stores.
Core headline earnings will come in at R376-million, of which R351-million is related to continuing operations and R25-million to discontinued operations. Excluding non-recurring income from foreign exchange gains of R22-million, core headline earnings from continued operations amounted to R329-million, equating to core headline earnings of 37.35c/share, a decline of 13.5% compared to a year ago.
“The performance of the Blue Label group remains resilient in an adverse economic environment. In spite of the Covid-19 pandemic, the group has continued to deliver essential services, including electricity, airtime, data and other digital services, as well as providing financial transactional services, which have not been negatively impacted,” it said in the trading statement.
Cash flow improved, with cash generated from operating activities of R970-million in the six-month period.
Blue Label, which is led by brothers Brett and Mark Levy as co-CEOs, is expected to publish its interim financial results on 26 February.