| Mon 14 Jul 2008, 14:44 | | BLU - Blue Label Telecoms - Trading Update And Announcement Of A Strategic |
|
BLU
BLU
BLU - Blue Label Telecoms - Trading Update And Announcement Of A Strategic
Relationship In Mexico
Blue Label Telecoms Limited
(Incorporated in the Republic of South Africa)
(Registration number 2006/022679/06)
Share code: BLU & ISIN: ZAE000109088
(Blue Label or the group)
TRADING UPDATE AND ANNOUNCEMENT OF A STRATEGIC RELATIONSHIP IN MEXICO
Trading update
Shareholders of Blue Label are advised that the group anticipates an increase in
the following:
- earnings and headline earnings of between 20% and 30% when compared to the
forecast earnings and headline earnings reported in the pre listing
statement (PLS);
- pro forma earnings and headline earnings of between 7% and 12% when
compared to the forecast pro forma earnings and headline earnings in the
PLS.
The PLS included the following unaudited pro forma and forecast financial
information:
- the unaudited forecast for the year ending 31 May 2008, which represents
the group`s forecast performance, taking into account the restructuring and
the capital raised on listing effective 14 November 2007;
- the unaudited pro forma forecast for the year ending 31 May 2008, which
represents the group`s forecast performance, taking into account the
restructuring and the capital raised on listing effective 1 June 2007
(being the beginning of the period, and the date from which the majority of
the group`s subsidiaries became wholly owned);
- the unaudited pro forma income statement for the year ended 31 May 2007,
which represents the group`s historical performance, taking into account
the restructuring effective 1 June 2006;
- the unaudited pro forma and forecast "basic" and "core" financial
information reflects the adjustments in respect of non-recurring
expenditure arising from the listing and the amortisation of intangible
assets.
The information in the underlying table illustrates the group`s trading update
in comparison with the unaudited pro forma and forecast financial information
referred to above:
Comparison of 31 May 31 May 2008 31 May 2008 % increase to 31
2008 results to 31 May forecast per TRADING UPDATE May 2008
2008 forecast. PLS RANGE forecast
(Unaudited)
Earnings and headline 144 173 - 187 20% - 30%
earnings attributable to
equity holders
R`millions
Core earnings 234 257 - 281 10% - 20%
R`millions
EPS and HEPS (cents) 26.30 29.36 - 31.74 12% - 21%
Core EPS (cents) 42.68 43.62 - 47.69 2% - 12%
Comparison of 31 May 31 May 2008 31 May 2008 % increase to 31
2008 pro forma results pro forma pro forma May 2008
to 31 May 2008 pro forma forecast per TRADING UPDATE pro forma
forecast. PLS RANGE forecast
(Unaudited)
Earnings and headline 250 267 - 280 7% - 12%
earnings attributable to
equity holders
R`millions
Core earnings 340 367 - 384 8% - 13%
R`millions
EPS and HEPS (cents) 33.61 34.84 - 36.54 4% - 9%
Core EPS (cents) 45.81 47.89 - 50.11 5% - 10%
Comparison of 31 May 31 May 2008 %
2008 pro forma results 31 May 2007 pro forma increase to 31
to 31 May 2007 pro forma per TRADING UPDATE May 2007 pro
historical pro forma. PLS RANGE forma
(Unaudited)
Earnings and headline 90 267 - 280 197% - 211%
earnings attributable to
equity holders
R`millions
Core earnings 124 367 - 384 196% - 210%
R`millions
EPS and HEPS (cents) 15.51 34.84 - 36.54 125% - 136%
Core EPS (cents) 21.31 47.89 - 50.11 125% - 135%
The increase in Blue Label`s earnings per share (EPS), headline earnings per
share (HEPS) and core EPS is attributable to the following factors:
- Revenue contributed by the Telecommunication distribution segment has
increased due to organic growth and an increase in consumer demand for
prepaid airtime;
- Effective asset management, including the successful application of cash
raised on listing and cash generated through operations has enhanced the
group`s liquidity and ability to generate revenue. The group has also
generated additional finance income due to the increase in interest rates;
and
- The restructuring and consolidation of Blue Label`s subsidiaries has
resulted in the achievement of economies of scale as well as operational
and technological efficiencies.
This trading statement has not been reviewed or reported on by the group`s
external auditors.
Pro forma reconciliation
Blue Label Telecoms` financial results for the financial year ended 31 May 2008,
which are expected to be announced on or about 26 August 2008, will include a
reconciliation of the group`s unaudited pro forma financial information for the
year ended 31 May 2008 with the actual results for the financial year ended 31
May 2008.
Strategic relationship in Mexico
Blue Label Mexico
Shareholders are advised that Blue Label Telecoms has jointly established Blue
Label Mexico, with Nadhari S.A. de C.V., a Mexican company that has expertise in
the strategic and operational development of products and services within
emerging markets.
Blue Label Mexico has been created to pursue opportunities which are
complimentary to Blue Label`s current areas of business. The establishment of a
business presence in Mexico is an important step in the group`s goal of creating
a transaction based distribution network in the emerging markets of Latin
America.
It is intended that Blue Label Mexico will serve as a platform for the sale and
distribution of secure electronic tokens of value, including Microsoft products,
services and advertisements, pursuant to the strategic relationship between Blue
Label and Microsoft Corporation.
Senior members of Blue Label`s South African management and technology teams are
actively involved in the introduction and implementation of Blue Label business
strategies, processes and technologies in Mexico. Blue Label Mexico will
commence business on 1 September 2008.
14 July 2008
Sponsor: Investec Bank Limited
Date: 14/07/2008 14:44:54 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
