Blue Label Telecoms has issued a trading statement informing shareholders that its basic, headline, and core headline earnings per share for the year ended 31 May 2023 are expected to decrease by more than 60%.
- While Blue Label’s core businesses showed growth in revenue, gross profit, and core headline earnings per share for the same period, the anticipated decrease in earnings is primarily attributed to extraneous contributions related to the recapitalization transaction of Cell C.
- The company reported that excluding the impact of certain non-recurring income and contributions, its earnings increased by around 9%.
- Core headline earnings, excluding the extraneous contributions, rose by R78 million (9%) from R847 million to R925 million.
- Earnings per share increased by 8% to 100.35 cents per share, while headline earnings per share increased by 9% to 101.24 cents per share.
- The extraneous contributions affecting the May 2023 earnings include expected credit losses, fair value movements, finance costs, finance income, partial reversal of impairments, and recognition of net accumulated losses related to Cell C.
- Blue Label is scheduled to release its full-year results at the end of August, providing more detailed information regarding the factors impacting its earnings.
The anticipated decrease in earnings for Blue Label Telecoms is largely influenced by the extraneous contributions linked to the recapitalization transaction of Cell C.