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Blue Label Telecoms


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#101 vlam

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Posted 22 August 2018 - 08:20 AM

Results for the year ended 31 May 2018

Highlights
- Increase in revenue to R26.8 billion*
- Increase in EBITDA of 4% to R1.34 billion
- Increase in core headline earnings per share of 4% to R120.61 cents
- Increase in gross profit of 7% to R2.28 billion
- Increase in core headline earnings of 30% to R1.03 billion
- Increase in cash generated from operating activities to R3.2 billion
* On inclusion of the gross amount generated on "PINless top-ups", the effective increase equated to 9%.


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#102 JK001

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Posted 21 August 2018 - 09:54 PM

knee jurk response today was excellent opportunity, thanks: 

 

CellC Debt reduced significantly, network investment to grow business awesome, excited about that 300% plus fiber growth. CellC remains disruptive to the status quo. Except for Steinhoff, BLU probably the lowest investable P/E on JSE. 

 

Hope tomorrow's financial statements will shift the pivot. Great thing about BLU is it does not require door-to-door sales, it is ubiquitous and BLU managed to monopolize prepaid airtime.

 

 


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#103 Bullhunter

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Posted 02 August 2018 - 09:30 AM

Bull hunter..hi when do you foresee share increasing from 9.15? Thanks

 

Who knows, but the ICASA issues surrounding the Cell C acquisition and the battle with Cell C's BEE partners must be resolved


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#104 Ms Jet

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Posted 02 August 2018 - 08:04 AM

Bull hunter..hi when do you foresee share increasing from 9.15? Thanks
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#105 Bullhunter

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Posted 02 August 2018 - 07:32 AM

Ticketpro kiosks to be rolled out in Spar stores nationwide

 

Spar%20Ticket%20Pro.jpg

 

A new, exclusive partnership between Spar and South African ticketing company Ticketpro will see customer kiosks being rolled out in Spar stores nationwide.

30/07/2018

Through utilising technology developed by Blue Label Telecoms, Ticketpro streamlines the ticketing, hospitality and access control for a range of events across the country, offering customised ticketing solutions to a wide variety of events including concerts (international and local), expos, lifestyle, theatre and sporting events. Ticketpro is also a ticketing partner for PSL Soccer league and teams, Cricket South Africa, Blue Bulls rugby, The Cell C Sharks, The Kings, Ticketpro Dome events, SA Open Golf tournament, Sun International and Tsogo Sun events.

As part of its new kiosk offering, the company will also offer commuter bus ticket sales in Spars (Putco) and long and short haul bus tickets for City to City, Translux, Intercape and Eldos, with more services launching soon. 


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#106 Bullhunter

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Posted 02 August 2018 - 07:23 AM

 

Blue Label's investment in Cell C is worth R9.00 per share.

 

In other words, at the current share price, you are getting the pre-paid business which the Levy brothers built up over years, for free. 


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#107 Bullhunter

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Posted 01 August 2018 - 01:56 PM

Cell C set to score from Rain’s fixed-LTE pullback

 

 

 

 

 

By DUNCAN MCLEOD  

31 July 2018

 

Cell C could be the big winner from new mobile operator Rain’s decision to suspend sales of fixed-LTE products with effect from 1 November 2018.

TechCentral broke the news on Monday that Rain will “temporarily suspend” the sale of fixed-wireless 4G/LTE products through its partner Internet service providers to “better manage capacity” on its network, which has come under heavy load. The company will instead focus on its mobile offerings, which it sells directly to consumers through its website. Existing fixed-LTE customers will not be affected by the decision.

Rain sells fixed LTE to Internet service providers through its partner Internet Solutions. Some ISPs have expressed disappointment in Rain’s decision but said that Cell C offers a compelling alternative.

The fixed broadband market is growing, and we will continue to meet reseller and customer demand with the Cell C fixed-LTE services at competitive rates

 

Murray Steyn, executive head of wholesale at Internet Solutions, said the company will work closely with Rain to ensure existing fixed-LTE clients continue to receive their expected services.

“The fixed broadband market is growing, and we will continue to meet reseller and customer demand with the Cell C fixed-LTE services at competitive rates,” Steyn said. “Currently available packages range between 20GB and 200GB/month and we regularly review these to meet varying customer demands.”

He described Rain’s decision as “not ideal”. However, Internet Solutions has had “numerous engagements with Rain and understands the rationale of their decision”.

“Our primary concern is continuing to provide fixed-LTE services to our resellers and their customers, and we will do so with Cell C.”

MWeb expressed a similar view. The company’s GM for product, sales and marketing, Carolyn Holgate, said the ISP remains “well positioned with Cell C LTE, which has great coverage and is increasingly meeting our customers’ requirements”.

“MWeb’s main concern is for our existing Rain LTE customers,” she said. “However, we have been given assurances their services will remain.”

Vox CEO Jacques du Toit said he supports Rain in its efforts “in getting back into sales mode in the next few months”.

“The reality is that this kind of technology is bound to have a huge uptake from customers and, as such, it has enjoyed extraordinary success.”  

Blue Labels investment in Cell C is worth R9.00 per share.


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#108 Bullhunter

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Posted 30 July 2018 - 11:00 AM

Why Blue Label Telecoms got battered Mark and Brett Levy say they are doing everything right, but are undermined by ‘bizarre’ rumours
Financial Mail
26 JULY 2018 - 05:00 GIULIETTA TALEVI
Unlike its whisky namesake, Blue Label Telecoms has proved less than rich and rewarding this year.

With less than a month to go before the company releases its year-end results, Blue Label’s already battered shares have come in for a fresh bruising, taking this year’s losses to date to 44% and its share price to a three-year low.Blue Label’s stock market woes are evidently worrying backers; Levy acknowledges "many" shareholders are calling the company, which specialises in the distribution of anything pre-paid, including airtime and electricity, to ask what is going on.

"There’s a rumour mill that somehow generates its own momentum and … a lot of the rumours … are so absurd that it’s bizarre," he says. Among the chatter: that Blue Label is one of short seller Viceroy’s next targets, though given Viceroy’s own reputational issues that fear may well be overdone.

Cell C, however, is likely the big issue. In May, Blue Label hosted a conference call to respond to the 10 most commonly asked questions about its investment in Cell C, including the structure of Cell C’s R8.2bn net debt, part of which is now housed "off-balance-sheet" — which for some is a key red flag.

In the call, acting CFO Robert Pasley said: "Questions may have arisen because of a misunderstanding of the scale of the finance costs below the earnings before interest, tax, depreciation and amortisation [ebitda] line, which may imply that we have more debt on the balance sheet" than expected after the company’s recapitalisation.

Among the concerns is that R1.8bn of debt related to the finance of mobile handsets is housed off-balance-sheet. The reason, said Pasley, is that Blue Label regards it as a "subscriber liability" — in other words, subscribers would ultimately settle the debt.

Cell C also has three debt instruments tied up in special purpose vehicles, but Blue Label is adamant that these are "completely" ring-fenced and will have no recourse "whatsoever" to Blue Label.

It says Cell C is also on track to pay back at the end of the month R740m it drew down as part of a R1.3bn loan.

Levy makes the point that when Blue Label concluded the Cell C purchase alongside Net1, which took a 15% share in the mobile operator, its shares rallied to just below R19.While there is talk in the market that Blue Label might have to issue more equity to support Cell C, Levy denies this. "There are no plans to issue more paper," he says.

But Mergence portfolio manager Peter Takaendesa is concerned that Cell C is going to continue to need funding, "which is not a business model that Blue Label is used to", he says.

"They might have to provide [further] loans and Cell C’s gearing remains quite a risk for a third operator in the market," particularly when that market is all but stagnant.

Arguing that Blue Label’s small-cap status is also a factor in the sell-off of its shares, Takaendesa believes it will be difficult "to publish numbers that shoot the lights out".

Still, Levy says the company "looks forward" to presenting its results. "We believe the business is where it should be," he says.

White says: "We’ve been expecting Cell C to increase revenue and ebitda and we are still sticking with what we have said before: nothing has changed."

In the May conference call, Cell C reiterated that its ebitda margins would hit the "low-to mid-30% level" towards the end of its present business plan in 2021.

Boutique asset manager Tantalum Capital has a similarly upbeat view. In a research report in April it said: "Assuming high single-digit revenue growth and some cost savings from network sharing, capital investment in leased sites and renegotiation of onerous contracts, we envisage R5.3bn (28.2% margin) of ebitda in 2019."

That’s still below Vodacom and MTN but Tantalum believes that if Blue Label hits its earnings target and there is a drop in Cell C’s gearing, the share could gain by as much as R6.

"We have bought into Blue Label believing that it has significant upside and has less to fear in terms of regulatory interference in comparison with its larger peers.

"With improving disclosure of Cell C’s financial statements and further evidence of operational traction, we believe [it] will rerate handsomely in time."


Edited by Bullhunter, 30 July 2018 - 11:00 AM.

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#109 SoleTrader

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Posted 16 July 2018 - 05:35 PM

Small caps being decimated. BLU today looked like that final selloff. Took some at 830c. Results due in a couple of weeks, consensus calls for 41c DPS and a 10% decline in HEPS due to dilution. Top analyst has got a R27 target.
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#110 Goliath

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Posted 12 April 2018 - 04:11 PM

Organic growth in its core business (excluding 3G and Vodacom) was an excellent 21%. Mexico,after 10 years of operations, is making an after tax profit.

Bull, give us an update on your predictions - will appreciate! (I'll post in relevant topic)


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#111 SoleTrader

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Posted 11 April 2018 - 08:55 PM

I think the share is starting to move on the listing of Cell C rumoured for early 2019. Took some at R13
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#112 SoleTrader

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Posted 11 April 2018 - 08:41 PM

I think the share is starting to move on the listing of Cell C rumoured for early 2019. Took some at R13
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#113 Bullhunter

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Posted 22 February 2018 - 04:02 PM

Organic growth in its core business (excluding 3G and Vodacom) was an excellent 21%. Mexico,after 10 years of operations, is making an after tax profit.


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#114 SoleTrader

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Posted 09 October 2016 - 09:42 PM

Its a pity Blue Label Telecoms didnt sponsor the All Blacks on Saterday.  Isnt the cheaper entry and the more diversified one via NET1 UEPS? 


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#115 SouthAfricanMi.com

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Posted 06 October 2016 - 10:42 AM

There've been whispers of a possible Cell-C transaction.

 

We've seen(from their FY results 2016) that MTN have lost market share in RSA. So its a logical progression, that the spoils have gone to Cell C.

 

Besides the initial capital outlay to fund  the deal, which might hurt it in the short run, I don't think anyone wants to be short BLU right now.

 

The news of the Cell C acquisition set a fire under this one.

 

We did feel it was undervalued (at still think it offers some value). 

 

But to fund this acquisition they gonna have to issue a massive amount of shares or take on vast amounts of debt.

 

We think they will do a bit of both, but will come running to shareholders for funds first.

 

http://www.southafri...g-6oct2016.html


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#116 Trader1

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Posted 31 August 2016 - 12:34 PM

TOR results out today. We know that they are going to be low but the comments should show some insight as well as the conference call on Friday.


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#117 TheConflict

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Posted 30 August 2016 - 04:46 PM

There've been whispers of a possible Cell-C transaction.

 

We've seen(from their FY results 2016) that MTN have lost market share in RSA. So its a logical progression, that the spoils have gone to Cell C.

 

Besides the initial capital outlay to fund  the deal, which might hurt it in the short run, I don't think anyone wants to be short BLU right now.

 

 


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You win some you lose some...


#118 Trader1

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Posted 30 August 2016 - 09:34 AM

So seems the market has been waking up to this one.. 

 

YTD: 59% up

7 days 3.5% up 

Last month 4.5%

Last 12months :90%

 

We still feel it is under valued and value it at closer to R24. When we did our valuation on 15 May 2016, it was trading at R16.40

 

Keep an eye on this one guys.

 

http://www.southafri...lecoms-blu.html

TOR also in this space - could be a Ten bagger at current prices


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#119 SouthAfricanMi.com

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Posted 29 August 2016 - 05:55 PM

So seems the market has been waking up to this one.. 

 

YTD: 59% up

7 days 3.5% up 

Last month 4.5%

Last 12months :90%

 

We still feel it is under valued and value it at closer to R24. When we did our valuation on 15 May 2016, it was trading at R16.40

 

Keep an eye on this one guys.

 

http://www.southafri...lecoms-blu.html

 

 

 


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#120 soutie

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Posted 27 May 2015 - 03:34 PM

Yeah agreed why...? Only for monetary gain. 

What it seems like to me is they want to short the stock in a big way & nobody else is willing to lend the script. 

There's no point in converting to go long...? surely that would just incur needless trading costs.

2mths ago was trading around R8.60...Sub R8 as I type..... :rolleyes:

Complete lack of morals to short your own stock to that extent, them being majority owners when combining their holdings.

Ellies directors also guilty of this type of behavior around the R9.50 mark & look at them now.

 

So short Blutel it is... 


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