Blue Label Telecoms, which owns about 49.5% of Cell C after the mobile operator’s recent recapitalisation, said on Thursday that its revenue for the six months ended November increased as it grew its market share.
In its six months ended November 30, the group said its revenue rose by 8% to R9.8 billion, while core profit grew 15% to R94 million.
Its core businesses continued to generate further growth in revenue, gross profit and core headline earnings per share for the reported period.
“The predominant extraneous contributions to the November 2022 basic, headline and core headline earnings per share emanated primarily from the recapitalisation transaction of Cell C,” the group said.
In September, Cell C announced that it had concluded its debt recapitalisation, which amounted to R73.3 billion. At the time, Blue Label said, from its perspective the recapitalisation of Cell C, together with the benefits to be derived from Cell C’s turnaround strategy and its sustainability, would enhance the value of its investment therein and restore its shareholder value.
Blue Label said it continued to increase market share and bolster its product and services mix to defend and grow its position in the market.
The group said that, although electricity revenue generated on behalf of the utilities increased by 7% by R1.13 billion to R17.06 billion, net commissions earned, calculated on a kW/hour usage basis, declined by R11 million to R142 million.
“Nersa electricity tariffs increased gross electricity revenue. However, the decline in commissions was primarily as a result of a decrease in electricity usage, emanating from a higher frequency of load shedding, as well as margin compression,” it said.
Gross gaming revenue increased by 58% to R1.5 billion, with BluVoucher sales continuing to gain traction. Gross ticketing revenue rose by 152% to R473 million, primarily as a result of the revenue generated through commuter bus channels.
BUSINESS REPORT