Blue Label Telecoms grows by 8%

South African-based prepaid distribution company Blue Label Telecoms reported revenue for 6 months through November 2010 was up 8 percent from the year before to ZAR 9.1 billion. Much of the revenue comes from its continued push into the IT sector in South Africa and its business across Africa.

Its airtime distribution business in South Africa grew revenues 12.1 percent to ZAR 8.5 billion, while the international distribution business dropped 35 percent to ZAR 440 million after Nigerian operator Multi-Links cancelled its contract with Blue Label.

Earnings before interest, taxation, depreciation and amortization (EBITDA) fell 15.7 percent to ZAR 310 million, while net profit gained 9 percent to reach ZAR 193 million thanks to a lack of impairment charges.

Blue Label said it would focus on driving revenue growth and gross margins in the near term. This is supported by its expansion into M-Pesa and prepaid electricity services in South Africa as well as advertising on prepaid vouchers, plus enhanced distribution with other operators in Nigeria.

In Nigeria, Thomas Miller, a British consultant with MTN – the country’s leading telecom operator – is positive about Blue Label’s initiatives.

“We are confident that the company will continue to provide adequate services and has a solid chance of moving even faster into the African continent through their enterprises,” he said.

By Staff