Blu Label Unlimited Group Ltd · JSE:BLU
Blu Label Unlimited — FY2020 Earnings Presentation
24 slides from Blu Label Unlimited's earnings presentation, Aug 27, 2020
Slide 1: Audited Results for the year ended 31 May 2020
AUDITED RESULTS For the year ended 31 May 2020
Slide 2: Highlights for the 12 months ended May 2020
HIGHLIGHTS FOR THE 12 MONTHS Ended 31 May 2020 Revenue up 7% to R59.9 billion, incl. the gross amount Gross revenue* 70 000 R'millions generated on PINless, electricity, ticketing, gaming and other 60 000 50 000 Gross profit of R2.12 billion 40 000 30 000 GP margin improves from 9.21% to 10.05
Slide 3: Revenue, Debt and Cash Flow
Revenue, Debt and Cash Flow Despite a significant increase in debt levels during the 2018 financial year, Gross revenue with a consequent reduction in interest earned, there has been consistent 70 000 R'millions growth in revenue. In the current year, cash flow has shown strong 60 000 improvement
Slide 4: Covid-19 Impacts
Covid–19 Impacts Blue Label has demonstrated relative resilience during lockdown due to essential nature of products and increasing digitisation of our distribution Covid-19 has had a people impact, not a technology impact Most of the company, incl. a fully functional Customer Interaction Cent
Slide 5: SA Distribution – Product Performance
SA Distribution – Product Performance Revenue increased 7% to R59.7 billion, incl. the gross amount generated on PINless, electricity, ticketing, gaming and other Covid-19 negatively affecting retail sales, ticketing, gaming and starter pack Revenue by product 25 000 distribution R'million 20 00
Slide 6: SA Distribution – Channel Performance
SA Distribution – Channel Performance Formal retail and independents impacted by Covid-19 shut down Customer buying habits continue to evolve Revenue by channel Corporate channel, including banking, continues to take market share 30 000 R'million assisted by the move to digital purchasing 25 0
Slide 7: Informal Market
Informal Market Financial inclusion remains Blue Label’s driving philosophy R1 600.00 Informal traders increased 58%; base will continue to grow R1 400.00 Millions R1 200.00 R1 000.00 Product mix movements showing growing importance of VAS & financial services R800.00 R600.00 Launched: R400.00
Slide 8: Comm Equipment Company
Comm Equipment Company Debt outstanding of R716m at 31 May 2020 Decrease 57% from R1.7 billion at 31 May 2019 Although debt has reduced by R950m year-on-year, CEC book has only reduced by R185m from R3.12bn at 31 May 2019 to R2.94bn at 31 May 2020 Strong collections and better deal structure
Slide 9: Cell C's turnaround strategy is driving positive change
CELL C’S TURNAROUND STRATEGY IS DRIVING POSITIVE CHANGE 1 2 3 4 Liquidity Focus Network strategy Operational Rationalisation Recapitalisation Liquidity is in place. Evolution of the capex A cost efficiency programme. Complex restructure. intensive, infrastructure based network to a aggregator of Dro
Slide 10: 2020 Operational Overview
2020 Operational Overview For June 2019 to May 2020 • A reduction in approximately a third of the customer base but only a 2% 2020 2019 % change R’m R’m decline in service revenue. • Resulting in a quality base of Service 13 901 14 247 -2% subscribers. revenue • Not wasting commercial expenses to ac
Slide 11: Total Subscribers
Evolution of the customer base in pursuit of profitability • We have been actively managing our customer base by pursuing more profitable customers. Service Revenue vs Total Subscribers • This has resulted in a reduction in the Cell C Million 2019 2018 % change customer base. With a decline on 28% o
Slide 12: Cigicell
Cigicell REVENUE COLLECTION REVENUE PROTECTION Gross electricity sales continue to show resilience – increased 13% to R22.7 billion Covid-19 resulted in a strong March, April, May sales figures ELECTRICITY AND PREPAID ELECTRICITY WATER METER AUDITS AND WATER SALES AND REPLACEMENTS Launched Fre
Slide 13: Blue Label Data Solutions
Blue Label Data Solutions Covid-19 severely interrupted operations (no new sales in April & May) with 800+ call centre agents furloughed May 2020 May 2019 Intensive efforts to assist call centre agents to work from home and slowly return to R’000 R’000 office as lockdown eased Revenue 189 104 20
Slide 14: Ticketpro
Ticketpro Ticketpro was on track to have its most profitable year – then Covid-19 struck, crippling the industry Despite this major setback, Ticketpro has used the time to rebuild and technically develop new and improved systems and infrastructure Continue to expand the largest ticketing footp
Slide 15: Technology – Innovation and Digital Enablement
Technology – Innovation and Digital Enablement Created digital capabilities – accelerated go-to-market strategies with digital transformation pipeline • Entrenching our entrepreneurial culture and agile practices has accelerated our ability to execute on strategic growth objectives • Innovative to
Slide 16: Technology – Security, Risk and Compliance
Technology – Security, Risk and Compliance Specific concentration on scalability and platform refactoring ▪ Optimal scalability achieved for high-speed throughput ▪ Expanded hybrid-cloud strategy, enabling uptime of business-critical applications ▪ Infrastructure and software investments to improv
Slide 17: Financial Results May 2020
Financial Results May 2020 Dean Suntup
Slide 18: Financial Highlights
FINANCIAL HIGHLIGHTS EBITDA of Revenue of R1.21 R21.1 billion Successful completion of billion net of extraneous the disposal of the expenditure Blue Label Mobile Group and the Handset division of 3G Mobile Net cash Increase in generated from gross profit operating activities margin from of from R1.
Slide 19: Income Statement
Income Statement for the year ended 31 May 2020 Extraneous Extraneous Group costs* Remaining Group costs** Remaining Growth Growth May 2020 May 2020 May 2020 May 2019 May 2019 May 2019 remaining remaining R'000 R'000 R'000 R'000 R'000 R'000 R'000 % Revenue 21,135,326 - 21,135,326 23,602,264 - 23,602
Slide 20: Extraneous costs for the year ended May 2019
Extraneous costs for the year ended 31 May 2019 ** The predominant negative contributions to Group earnings in the prior year were attributable to: • Cell C’s trading losses, impairment of its property, plant and equipment, the impact of a derecognition of its deferred tax asset and the consequent i
Slide 21: Extraneous costs for the year ended May 2020
Extraneous costs for the year ended 31 May 2020 *The predominant negative contributions to Group earnings in the current year were attributable to: Extraneous Fair value Once-offs costs losses (7) Impairments (8) WiConnect(9) (10) May 2020 May 2020 May 2020 May 2020 May 2020 • fair value downward ad
Slide 22: Revenue
Revenue for the year ended 31 May 2020 Group Group May 2020 May 2019 Growth Growth R'000 R'000 R'000 % Prepaid airtime, data and related revenue 33,875,843 32,347,879 1,527,964 5% - Prepaid airtime and data 18,842,481 20,780,969 (1,938,488) (9%) - "PINless" airtime top-ups 15,033,362 11,566,910 3,46
Slide 23: Balance sheet
Balance sheet as at 31 May 2020 Group Group • Of the net decrease in intangible assets and goodwill of R1 May 2020 May 2019 billion, R682 million related to the disposal of the Handset R'000 R'000 division of 3G Mobile and Blue Label Mobile, R151 million Non- current assets 2,357,620 3,477,070 to th
Slide 24: Cash Flow
Cash Flow for the year ended 31 May 2020 • Cash generated from trading operations included working capital movements comprising an increase in trade receivables of R148 million, an increase in advances to customers of R65 million and a decrease in trade payables Group Group of R397 million, offset b
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