Blu Label Unlimited Group Ltd · JSE:BLU
Blu Label Unlimited — Blue Label Telecoms — H1 2017 Earnings Presentation
24 slides from Blu Label Unlimited's earnings presentation, February 2017
Slide 1: Unaudited results for the half year ended 30 November 2016
IME IR T AA AT SD S ET ND HA TS EN M AY P ILL SB HER O UC GE V CKS CHAT 4 CHAN everywhere you go THE POWER O F CONVENIEN CE TER PA STAR WA TE RG AT EW AY EL EC TR IC ITY P OS TIC KET S UNAUDITED RESULTS FOR THE HALF YEAR ENDED 30 NOVEMBER 2016 AIRTIME
Slide 2: Disclaimer
AIRTIME DISCLAIMER: The information contained in this document has not been verified independently. No representation or warranty express or implied is made as to and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained herein.
Slide 3: Group highlights for the half year ended 30 November 2016
UNAUDITED INTERIM RESULTS For the half year ended 30 November 2016 Group highlights for the half year ended 30 November 2016 Revenue » Increase in revenue of 3% to R13.2 billion* 14 000 12 000 » Increase in gross profit of 25% to R1.1 billion 10 000 » Increase in EBITDA of 15% to R715 million 8 000
Slide 4: South African Distribution
SOUTH AFRICAN DISTRIBUTION BRETT LEVY – JOINT CEO • Prepaid airtime, data, starter packs and handsets • Prepaid electricity and water • Ticketing • Financial and other Value Added Services • Acquisition of stake in Cell C SOUTH AFRICAN DISTRIBUTION Financial and operational highlights Prepaid Airtim
Slide 5: Prepaid Airtime, Data, Starter packs and Handsets
Prepaid Airtime, Data, Starter packs and Handsets » Maintaining 700,000 new SIM connections/month, despite depressed market » Increasing sales driven by: - expanding banking channel - strong demand for data vouchers - competitive pricing though bundled offerings - data analytics helps target existin
Slide 6: Prepaid Electricity and Water
Prepaid Electricity and Water Prepaid Electricity - Revenue 1 400 » Growth continues: 1 200 - commissions earned up 8% to R103 million 1 000 - equates to R6.9 billion in sales, up 15% 800 R’millions » Growth in UniPIN redemptions: 600 2017 2016 - value up 19% to R509 million 400 2015 - volume up 11%
Slide 7: Financial and other Value Added Services; Acquisition of stake in Cell C
Financial and other Value Added Services » Bill Payments: - processing ~400,000 transactions/month for ~151 bill issuers - revenue growth up by 28% - number of transactions increased by 58% - additional bill issuers include Multichoice for satellite TV subscriptions » Credit and Debit card acquiring
Slide 8: International Distribution: Oxigen Services India - Synopsis
INTERNATIONAL DISTRIBUTION MARK LEVY – JOINT CEO • Oxigen Services India • Blue Label Mexico Mobile Segment Solutions Segment Group Prospects Oxigen Services India - Synopsis » Expanding Fintech economy » Recent M&A deals driving escalating multiples » Indian Government demonetises currency on 8 N
Slide 9: Oxigen Services India – Online Wallets, Airtime Recharge and Banking
Oxigen Services India – Online Wallets » 30 million Oxigen Wallet subscribers Growth in Oxigen's Online Wallets » Supported by marketing, branding, advertising, sport sponsorships, brand ambassadors » Oxigen Wallet interoperability with: • >0.5m Virtual Visa Cards • >10,000 online sites 30m • DND hi
Slide 10: Blue Label Mexico - Highlights and Devices
Blue Label Mexico - Highlights GROSS PROFIT » Share of loss from R32.5 million to R22.1 million and narrowing further » Gross Profit increase 46% to R15.1 million » Sweating the assets: - increasing transactional throughput - continuous process improvements » Strengthening structures: - team, platfo
Slide 11: Blue Label Mexico – Airtime top-up and Bill Payments
Blue Label Mexico – Airtime top-up ARPU (Face Value) » Competitive MNO landscape » Blended margin increasing » Smaller and newer players driving market » Some price rebound » >90% of devices transact airtime top-ups ARPU TOTAL (FV) 17 Blue Label Mexico – Bill Payments Bill Payments Revenue » Growth
Slide 12: Blue Label Mexico – Financial Services and SIM Card Distribution
Blue Label Mexico – Financial Services FINANCIAL SERVICES REVENUE Merchants accepting Cards and Vouchers: » Strong growth » Ave ~25% of devices transacting Credit and Debit Card Acquiring: » Partnership with Mastercard, Visa and Banamex JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR
Slide 13: Mobile Segment and Solutions Segment
Mobile Segment » Complete ecosystem of services for mobile phone users » Core net profit up by 22% to R25.5 million » Cellfind: - Comprising converged communications, mobile financial services and value added services - bulk SMS distribution of about ~250 million per month - intensely competitive ma
Slide 14: Group Prospects
Group Prospects » The Board remains positive with regard to the investment in Cell C and other commercial benefits that will flow therefrom. » Demand for low-cost smart phones and tablets is expected to accelerate and, in turn, enhance revenue and profitability. » Financing of the mobile device elem
Slide 15: Financial - Highlights and Income Statement
Financial - Highlights Increase in Increase in gross Increase in revenue of 3% profit of 25% to EBITDA of 15% to R13.2 billion R1.1 billion to R715 million Increase in Increase in core headline earnings headline earnings NAV amounted to per share of 54% to per share of 52% R6.96 per share 81.78 cent
Slide 16: Financial – Income Statement Highlights
Financial – Income Statement Highlights Nov 2016 Nov 2015 Growth Growth R’000 R’000 R’000 % Revenue (R'billion) Revenue 13,245,513 12,875,274 370,239 3% 12 Gross profit 1,144,699 918,637 226,062 25% 8 GP margins 8.64% 7.13% 1.51% EBITDA 715,209 620,237 94,972 15% 4 Net profit 545,168 349,172 195,996
Slide 17: South African Distribution Revenue; Associates and Joint Ventures
Financial – South African Distribution Revenue Revenue (R'billion) 24 20 16 12 Electricity Pinless Reported Revenue 8 4 - Nov 2016 Nov 2015 Nov 2014 Nov 2013 Nov 2012 29 Financial – Associates and Joint Ventures Nov 2016 R’000 Net profit after tax 447,337 Gain on associate measured Nov 2016 Nov 2015
Slide 18: Financial – Performance and Balance Sheet
Financial – Performance Nov 2016 Nov 2015 Growth Growth R’000 R’000 R’000 % Net profit attributable to equity holders of parent 545,168 349,172 195,996 56% Headline earnings adjustment 17 5,328 (5,311) (100%) Headline earnings attributable to equity holders of parent 545,185 354,500 190,685 54% Core
Slide 19: Financial – Cash Flow
Financial – Cash Flow Summarised Group Statement of Cash Flows Nov 2016 Nov 2015 Cash Flow (R'million) R’000 R’000 1,400 Cash generated by operations 945,583 1,241,467 1,200 Interest received 25,693 17,460 Interest paid (65,819) (11,716) 1,000 Taxation paid (196,074) (157,779) 800 Cash flows from op
Slide 20: Supplementary – Blue Label factsheet
SUPPLEMENTARY INFORMATION Supplementary – Blue Label factsheet » Founded in 2001 » 1,844 employees Groupwide (FY’16) » Business model underpinned by long-term distribution contracts » Products and services include » - airtime, starter packs, data and handsets » - electricity and water » - ticketing
Slide 21: Supplementary – Charting our growth
Supplementary – Charting our growth Revenue GP 14 000 1 400 000 12 000 1 200 000 10 000 1 000 000 8 000 R‘million 800 000 R‘000 6 000 600 000 4 000 400 000 2 000 200 000 - - Nov 2012 Nov 2013 Nov 2014 Nov 2015 Nov 2016 Nov 2012 Nov 2013 Nov 2014 Nov 2015 Nov 2016 NAV per share EBITDA 800.00 800 000
Slide 22: Supplementary – Group Operating structure; Barriers to entry
Supplementary – Group Operating structure as at 30 November 2016 Blue Label Blue Label International Blue Label Mobile Blue Label Solutions South Africa Blue Label Distribution African Prepaid Services (90%) Cellfind Datacel The Prepaid Company Gold Label Investments Simigenix CNS Call Centre Blue L
Slide 23: Supplementary – Peer group and Shareholder Profile
Supplementary – Peer group * * • Blue Label Telecoms • Cigicell / Blue Label • Ticketpro / Blue Label • PayTM • Red Qiubo / Blue Label Mexico - JSE listed Telecoms Telecoms • Freecharge/Snapdeal • Cajeros Automaticos • Cyberplat • Conlog • Big Concerts / Computicket • Mobikwik • OXXO - Russian base
Slide 24: Thank you
THANK YOU NOTES: 22 BLUE LABEL UNAUDITED RESULTS FOR THE HALF YEAR ENDED 30 NOVEMBER 2016