Blu Label Unlimited Group Ltd · JSE:BLU
Blu Label Unlimited — H1 2020 Earnings Presentation
21 slides from Blu Label Unlimited's earnings presentation, February 2020
Slide 1: Interim Results Presentation
INTERIM RESULTS PRESENTATION 30 November 2019
Slide 2: Highlights for the six months ended 30 November 2019
Highlights for the six months ended 30 November 2019 Gross Revenue* 35 000 R'millions 30 000 } Revenue up 12% to R30.3 billion, incl. the gross amount 25 000 generated on PINless, electricity, ticketing and gaming 20 000 } Gross profit increased 10% to R1.2 billion 15 000 10 000 } GP margin improves
Slide 3: SA Distribution – Product performance
SA Distribution – Product performance Gross revenue by product 14 000 } Revenue increased 12% to R30.2 billion, incl. the gross amount generated on R'million 12 000 PINless, electricity, ticketing and gaming 10 000 8 000 } Product mix continues to expand with more gaming, money transfer services and
Slide 4: SA Distribution – Channel Performance
SA Distribution – Channel Performance Revenue by channel 14 000 R'million } Reach into SA market continues to grow 12 000 10 000 } Service levels to customers & competitors key focus area 8 000 6 000 } All channels apart from petroleum growing in tough economy 4 000 2 000 } Banking channel continues
Slide 5: Informal Market
Informal Market } Deliver products and services to under-serviced areas in a consistent and affordable manner } Total sign ups grew 59% to 27 000; targeting 100 000 over the medium term } Product offering has expanded significantly } Specialised focus on bringing transportation ticketing within arm’
Slide 6: Comm Equipment Company
Comm Equipment Company } CEC was acquired for it’s particular skill set } Innovative securitization of funding mechanisms to enable businesses to finance supply to their customers } Will expand funding beyond Cell C and DSTV in future } Reducing exposure to Cell C subsidies } Book decreased from R2.
Slide 7: Cigicell
Cigicell REVENUE COLLECTION REVENUE PROTECTION } On track to collect approx. R22 billion prepaid utilities for municipalities for FY20 } Margins are under pressure PREPAID ELECTRICITY ELECTRICITY AND AND WATER SALES WATER METER AUDITS AND REPLACEMENTS } Loadshedding is having an impact } Response –
Slide 8: Data Solutions
Data Solutions } Blue Label Data Solutions is a market leader in consumer data, big data, validation, verification, cleansing of data and lead generation } Dedicated compliance division ensuring adherence to Protection of Personal Information, Consumer Protection Acts & all relevant regulation } The
Slide 9: Blue Label – A Technology Company
Blue Label – A Technology Company } Specific concentration on platform refactoring Optimal scalability achieved for high-speed throughput Infrastructure and software investments to improve stability and ensure future capacity in line with up- and downstream Simplified integration mechanisms de
Slide 10: Recap of turnaround strategy to focus on sustainable growth
Recap of turnaround strategy to focus on sustainable growth 1 2 3 4 Liquidity Planning Operational Network strategy Recapitalisation Rationalisation Complete Complete Ongoing In progress Network strategy is an A cost efficiency Complicated and Liquidity platform from evolution of the capex programme
Slide 11: 2019 Operational Overview
2019 Operational Overview For the 6 months to November R’m 2019 2018 % Change Service revenue 7 268 7 164 1% EBITDA 1 481 1 453 2% Results excluding the adoption of IFRS 16 R e s u l t s P r e s e n t a t i o n
Slide 12: Customer base evolution in pursuit of profitability
Customer base evolution in pursuit of profitability Service Revenue vs Total Subscribers Million 2019 2018 % change Cell C has actively reviewed its product portfolio and increased its focus on retail pricing in pursuit of profitability. TOTAL SUBSCRIBERS SERVICE REVENUE While this has resulted in a
Slide 13: The Way Forward
The Way Forward } Back to basics – focus on debt reduction and improved cash generation } Airtime and data remain cash cows } Electricity and municipal revenue assurance is a growth area } Utilise CEC finance skills for innovative funding projects – bulk buying, interest income } Continue to improve
Slide 14: Financial Results
Financial Results Dean Suntup
Slide 15: Highlights
HIGHLIGHTS Increase of Core Increase in gross profit headline revenue of margin from earnings 2% to R11.5 9.75% to per share of billion* 10.52% 43.18 cents Increase in gross profit EBITDA of of 10% to R723 R1.21 million billion *On inclusion of the gross amount generated on “PINless top-ups”, prepai
Slide 16: Core Headline Earnings
Core Headline Earnings for the period ended 30 November 2019 Group Group Nov 2019 Nov 2018 Growth Growth R'000 R'000 R'000 % Core headline earnings 390 304 (128 707) 519 011 403% SPV fair value losses - 492 640 Cell C equity accounted losses - 123 056 390 304 486 989 (96 685) (20%) Non-recurring onc
Slide 17: Revenue
Revenue for the period ended 30 November 2019 Nov 2019 Nov 2018 Growth Growth R'000 R'000 R'000 % Prepaid airtime, data and related revenue 16 975 964 15 145 614 1 830 350 12% - Prepaid airtime and data 10 104 872 9 651 182 453 690 5% - "PINless" airtime top-ups 6 871 092 5 494 432 1 376 660 25% Pos
Slide 18: Income Statement
Income Statement for the period ended 30 November 2019 Group Group Remaining Growth Growth Reviewed Unaudited Cell C SPVs entities remaining remaining Nov 2019 Nov 2018 Nov 2018 Nov 2018 Nov 2018 entities entities R'000 R'000 R'000 R'000 R'000 R'000 % Revenue 11 488 576 11 273 841 - - 11 273 841 214
Slide 19: Balance sheet
Balance sheet as at 30 November 2019 Group Group • Assets and liabilities classified as held for sale Nov 2019 May 2019 R'000 R'000 of R1.77 billion and R676 million respectively relate to the reclassification of the assets and Non- current assets 2 752 176 3 477 070 liabilities of Blue Label Mobile
Slide 20: Cash flow
Cash flow for the period ended 30 November 2019 Group Group • Cash generated by operations included Nov 2019 Nov 2018 working capital movements comprising R'000 R'000 an increase in trade receivables of R711 million and a decrease in trade payables Cash generated by operations 390 152 (950 899) of R
Slide 21: Thank You Q & A
BLUE LABEL TELECOMS
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