Unaudited outcomes for the six months ended 30 November 2021
Blue Label Telecoms Restricted
(Integrated within the Republic of South Africa)
(Registration quantity 2006/022679/06)
JSE share code: BLU ISIN: ZAE000109088
(Blue Label, BLT, the Firm or the Group
Unaudited outcomes for the six months ended 30 November 2021
Monetary highlights and salient options
– Income of R9.1 billion*
– Enhance in gross revenue of 20% to R1.36 billion (2020: R1.14 billion)
– Enhance in gross revenue margin from 11.87% to 14.93%
– Web money generated from working actions of R862 million
– Curiosity?bearing borrowings lowered to R1.97 billion (30 November 2020: R2.32 billion)
– Headline earnings of 60.86 cents per share (2020: 40.96 cents per share)
– Core headline earnings of 62.69 cents per share# (2020: 42.70 cents per share)
* On inclusion of the gross quantity generated on ‘PINless high?ups’, pay as you go electrical energy, ticketing and gaming,
the efficient improve equated to 12% from R32.4 billion to R36.2 billion.
# On exclusion of non-recurring revenue of R148 million within the present interval and R22 million within the prior interval,
core headline earnings per share from persevering with operations elevated by 22% to 45.68 cents per share in comparison with
37.35 cents per share within the prior interval.
Group outcomes
Core headline earnings for the interval ended 30 November 2021 amounted to R549 million, of which R548 million associated
to persevering with operations and R1 million to discontinued operations. Core headline earnings amounted to 62.69 cents
per share.
Within the comparative interval, core headline earnings amounted to R376 million, of which R351 million associated to persevering with
operations and R25 million to discontinued operations. Core headline earnings amounted to 42.70 cents per share.
On exclusion of the non-recurring revenue of R148 million within the present interval and R22 million within the prior interval,
as illustrated within the underlying tables, core headline earnings from persevering with operations elevated by R71 million
from R329 million to R400 million and core headline earnings per share from persevering with operations elevated by 22%
from 37.35 cents per share within the prior interval to 45.68 cents per share. This development was indicative of a sturdy
buying and selling efficiency by the Group in the course of the interval beneath evaluate.
The non-recurring revenue emanated from a fraudulent scheme, working since 2015, which was perpetrated by two former
senior key executives of a subsidiary firm of the Group (‘the subsidiary’). These fraudulent transactions have been
carried out primarily exterior the course and scope of the subsidiary’s quick discipline of economic dealings, whereby
the perpetrators interposed themselves between middleman firms and the subsidiary for their very own profit.
As well as, sure transactions have been recognized evidencing theft of funds from the subsidiary and the fraudulent
concealment thereof. As soon as-off recoupment revenue, comprising the mixture worth of property both realised by or
signed-over to the Group on account of the fraudulent scheme, amounted to R315 million. This revenue was partially
offset by skilled charges incurred, taxation and the non-controlling curiosity thereon totalling R167 million,
leading to a internet recoupment of R148 million.
On exclusion of the non-recurring revenue in each the present and prior intervals, earnings per share and headline
earnings per share from persevering with operations elevated by 24% to 43.69 cents per share and 23% to 43.85 cents per
share respectively.
Earnings per share amounted to 60.71 cents per share, of which 60.59 associated to persevering with operations and 0.12 cents
per share associated to discontinued operations. Within the prior 12 months earnings per share amounted to 49.92 cents per share,
of which 46.80 associated to persevering with operations and three.12 cents per share associated to discontinued operations.
The monetary outcomes of WiConnect within the present and prior intervals of R1 million and R25 million respectively,
are disclosed in core headline earnings from discontinued operations and aren't included within the persevering with operations’
income, gross revenue, earnings earlier than curiosity, tax, depreciation and amortisation (EBITDA), and internet revenue after
taxation.
Income generated by the persevering with operations throughout the Group declined by 5% to R9.1 billion. As solely the gross
revenue earned on ‘PINless high?ups,’ pay as you go electrical energy, ticketing and gaming are recognised as income, on imputing
the gross income generated thereon, the efficient development in income equated to 12% from R32.4 billion to R36.2
billion.
Gross revenue elevated by R223 million (20%) to R1.36 billion, congruent with a rise in margins from 11.87%
to 14.93%.
Additional- Additional-
neous neous
Group revenue* Remaining Group revenue** Remaining Development Development
Nov 2021 Nov 2021 Nov 2021 Nov 2020 Nov 2020 Nov 2020 remaining remaining
Group revenue assertion R’000 R’000 R’000 R’000 R’000 R’000 R’000 %
Income 9 112 874 – 9 112 874 9 582 022 – 9 582 022 (469 148) (5)
Gross revenue 1 360 927 – 1 360 927 1 137 650 – 1 137 650 223 277 20
Different revenue 323 959 315 132 8 827 93 212 85 830 7 382 1 445 20
EBITDA 902 498 278 118 624 380 703 334 101 839 601 495 22 885 4
Non?controlling curiosity (60 350) (52 167) (8 183) (26 911) – (26 911) 18 728 70
Web revenue from persevering with operations 530 440 147 923 382 517 412 605 101 839 310 766 71 751 23
Core headline earnings 548 831 148 934 399 897 376 433 47 211 329 222 70 675 21
– from persevering with operations 547 820 147 923 399 897 351 568 22 346 329 222 70 675 21
– from discontinued operations 1 011 1 011 – 24 865 24 865 – –
Gross revenue margin (%) 14.93 14.93 11.87 11.87
EBITDA margin (%) 9.90 6.85 7.34 6.28
Weighted common shares (‘000) 875 496 875 496 881 557 881 557
Share efficiency from persevering with operations
EPS (cents) 60.59 43.69 46.80 35.25 8.44 24
HEPS (cents) 60.74 43.85 38.14 35.60 8.25 23
Core HEPS (cents) 62.57 45.68 39.88 37.35 8.33 22
* The extraneous contributions to Group earnings within the present interval have been attributable to:
– As soon as-off recoupment revenue, comprising the mixture worth of property both realised by or signed-over to the Group
regarding the fraudulent scheme. This revenue was partially offset by skilled charges incurred, taxation and the
non?controlling curiosity thereon (1); and
– Partial recoupment of losses by the Retail division on account of the closure of the WiConnect shops (2).
Extraneous
revenue* As soon as-offs(1) WiConnect(2)
Nov 2021 Nov 2021 Nov 2021
R’000 R’000 R’000
Different revenue 315 132 315 132 –
EBITDA 278 118 278 118 –
Non-controlling curiosity (52 167) (52 167) –
Web revenue from persevering with operations 147 923 147 923 –
Core headline earnings 148 934 147 923 1 011
– from persevering with operations 147 923 147 923 –
– from discontinued operations 1 011 – 1 011
** The extraneous contributions to Group earnings within the prior interval have been attributable to:
– Realised international alternate features on the USD20 million liquidity help supplied to SPV2 (3);
– As soon as?off revenue, together with the disposal of the Group’s curiosity in Blue Label Mexico (4); and
– Partial recoupment of losses by the Retail division on account of the closure of the WiConnect
shops within the prior interval (5).
Honest worth
Extraneous move-
revenue** ments(3) As soon as?offs(4) WiConnect(5)
Nov 2020 Nov 2020 Nov 2020 Nov 2020
R’000 R’000 R’000 R’000
Different revenue 85 830 – 85 830 –
EBITDA 101 839 16 009 85 830 –
Web revenue from persevering with operations 101 839 16 009 85 830 –
Core headline earnings 47 211 16 009 6 337 24 865
– from persevering with operations 22 346 16 009 6 337 –
– from discontinued operations 24 865 – – 24 865
On exclusion of the R278 million regarding the non-recurring recoupment revenue internet {of professional} charges
incurred within the present interval and R102 million within the prior interval, EBITDA elevated by R23 million from
R601 million to R624 million.
As anticipated, the rise in overheads included prices of R25 million attributable to new learnership initiatives,
whereby the profit thereof is realised by means of revenue tax financial savings on account of the part 12H allowances
being claimed for such learnerships. Moreover, further headcount and expenditure incurred to be able to improve
IT Infrastructure and the Group’s analytic and product growth capabilities, primarily contributed to the restricted
improve in EBITDA.
The Group generated optimistic money flows of R862 million from its working actions for the interval ended
30 November 2021.
Subsequent occasions
Banking services
In February 2022, The Pay as you go Firm Proprietary Restricted renegotiated an additional extension of its Investec facility
to 31 March 2023. The whole facility amounting to R1.56 billion excellent as at 30 November 2021 was lowered by
R340 million to R1.22 billion up to now. Thereafter, the publicity to Investec is required to be lowered by an additional
R30 million per 30 days to be able to cut back the utmost facility stability to R1.01 billion.
Airvantage and AV Know-how put obligations
On 14 December 2021, Blue Label Telecoms Restricted (‘BLT’) concluded agreements with the 40% shareholders of every
of AV Applied sciences Restricted (Mauritius) and Airvantage Proprietary Restricted (South Africa) (‘Airvantage’) in phrases
of which the put choices which they'd in opposition to BLT have been terminated. On 15 December 2021, BLT concluded a put choice
settlement with Digital Ecosystems Proprietary Restricted (previously Blue Label Cell Group) by way of which the latter
acquired the precise to place as much as 40% of the shares in Airvantage to BLT by no sooner than 15 December 2022 for
a most quantity of R110 million. If Cell C Restricted, via a board decision, passes a solvency and liquidity
check prior to fifteen December 2022, the put choice will probably be terminated.
Appreciation
We're grateful to all our employees members who've tailored to new methods of working throughout these unprecedented occasions
and proceed to contribute to the Group’s efficiency. The Board of Blue Label needs to precise its appreciation
to its suppliers, prospects and enterprise companions for his or her continued help and dedication to the Group.
Quick-form announcement
This short-form announcement is the accountability of the administrators of the Firm. This short-form announcement
is predicated on an extract of the unaudited condensed consolidated monetary statements for the half-year ended
30 November 2021 launched on SENS on 23 February 2022 and doesn't comprise full or full particulars.
Any funding resolution by traders and/or shareholders ought to be primarily based on consideration of the total SENS
announcement and unaudited condensed consolidated monetary statements for the half-year ended 30 November 2021.
These could also be requested by contacting Investor Relations by e-mail at lionela@blts.co.za and can be found for inspection
on the registered places of work of the Firm throughout workplace hours and on the Firm’s web site (www.bluelabeltelecoms.co.za)
at no cost.
The JSE hyperlink is as follows: https://senspdf.jse.co.za/paperwork/2022/JSE/ISSE/BLU/Interims.pdf.
For and on behalf of the Board
LM Nestadt BM Levy and MS Levy DA Suntup* CA(SA)
Chairman Joint Chief Government Officers Monetary Director
23 February 2022
* Supervised the preparation of the unaudited Group interim outcomes.
Administrators: LM Nestadt (Chairman)*, BM Levy, MS Levy, Okay Ellerine**, GD Harlow*, NP Mnxasana*, JS Mthimunye*, DA Suntup,
J Vilakazi*, PL Zim* *Unbiased Non?Government **Non?Government
Firm Secretary: J van Eden
Sponsor: Investec Financial institution Restricted
Auditor: PricewaterhouseCoopers Inc.
Extra info out there on-line at www.bluelabeltelecoms.co.za
Date: 23-02-2022 07:05:00
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