Johannesburg - Blue Label Telecoms expects its full-year results to show its headline earnings per share have improved by between 20% and 23% when it releases its numbers later this month.
The listed company, which specialises in prepaid vouchers for items such as electricity and airtime, says this increase is mostly thanks to organic growth in its local distribution segment.
Headline earnings per share are seen as a core metric of performance by analysts as this figure strips out unusual or non core items.
Joint CEOs Mark and Brett Levy says the company experienced “further growth in our financial performance as we continue investing in our distribution channels, expanding our footprint and increasing our products and services range".
Blue Label adds its earnings per share for the 12 months to May should come in at between 85.39c and 87.42c, which represents growth of between 26% and 29%.
Its predicted range for headline earnings per share is between 81.47c and 83.5c.
JSE rules requires companies to alert the market when they become reasonably aware that their results will differ by at least 20% from the previous corresponding period.
In a statement to shareholders, the listed company says its earnings per share will go mostly thanks to organic growth in the South African distribution segment, which was aided by its purchases of Retail Mobile Credit Specialists and Viamedia.
The local distribution segment is its largest contributor to profit.
Blue Label bought RMCS for R306.6 million in December 2013 and followed that deal with the August 2014 purchase of 75 % of Viamedia for R144.4 million initially. Blue Label was also set to pay as much as another R103.1 if Viamedia met certain targets.
In the half year to December, Blue Label reported revenue or R10 billion, a 14% gain on the previous year.
It noted at the time that headline earnings per share increased by 15% to 42.73 cents, which it achieved despite its share of losses in Mexico, where operations are still ramping up.
Blue Label’s results are set to be issued on August 19.
IOL