Full Year 2024 Blue Label Telecoms Ltd Earnings Call Transcript
Key Points
- Blue Label Telecoms Ltd (JSE:BLU) reported a significant increase in gross revenue from ZAR76.8 billion to ZAR89.3 billion, reflecting a 16% growth.
- The company has maintained a high system stability and resilience, achieving over 98% uptime across all transactional systems.
- Blue Label Telecoms Ltd (JSE:BLU) continues to invest in bolstering its in-house platforms and growing its digital footprint in South Africa.
- The company has made significant strides in executing cost-saving and revenue assurance initiatives, particularly in its Blue Label Distribution segment.
- Cell C, a subsidiary of Blue Label Telecoms Ltd (JSE:BLU), has shown improvements in network quality and operational efficiency, contributing to overall growth.
- Blue Label Telecoms Ltd (JSE:BLU) faced a challenging operating environment with high interest rates, high inflation, and record unemployment in South Africa.
- Load shedding significantly impacted the company's operations, particularly in the first nine months of the financial year.
- Gross profit decreased by 5% from ZAR3.48 billion to ZAR3.3 billion, indicating a decline in profitability.
- Comm Equipment Company (CEC), a subsidiary, faced a challenging financial year with earnings declining by ZAR188 million due to increased credit defaults.
- Core headline earnings per share declined by 34% to ZAR0.6866 per share, compared to ZAR1.0483 per share in the prior year.
Good afternoon, everyone. Thank you for joining us at the presentation of our annual financial results for the year ended May 31, 2024. I would also like to extend a warm welcome to Cell C CEO, Jorge Mendes; and CFO, El Kope, both of whom will be updating the market on Cell C strategic and operational progress to date.
Just by way of proceedings, I will provide you with a short overview of the operating environment and synopsis of the group's results, followed by key highlights of our core subsidiaries. I will then hand over to Jorge and El to share some insights into CELL Cs performance, after which Dean Suntup, our CFO, will take you through our financial results. We will then open the floor to questions and answer session.
The operating environment during the year was challenging. South Africa, like many global developed markets, experienced high interest rates and high inflation, which placed both business and consumers under significant pressure. Unfortunately, our country also continues to
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