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BLUE LABEL INTEGRATED ANNUAL REPORT 2014
AIRTIME
FINANCIAL DIRECTOR’S
REPORT
CONTINUED
The positive movement in EBITDA was attributable
to a decline in legal fees incurred by Africa Prepaid
Services Nigeria from R31 million to R20 million and
foreign exchange movements of R6 million.
The share of net losses from associates and joint
ventures comprised the following:
UKASH
The Group’s share of profits in Ukash, after the
amortisation of intangible assets, increased from
R7.3 million to R14.1 million. Of this growth,
R2.1 million was attributable to foreign exchange
gains and a consolidation adjustment of R3.2 million.
Organic growth resulted from increases in revenue of
14%, gross profit of 20% and EBITDA of 7%, all
reported in their local currency.
OXIGEN SERVICES INDIA
Although revenue increased by 27% at static
margins, the Group’s share of losses increased by
R2.7 million to R3.2 million.
Expenditure increased in line with the strategy to
focus on the growth of financial services transactions,
facilitated by its vast network of points of presence.
Implementation of this strategy requires working
capital, improvements in IT infrastructure along with
additional personnel and other resources.
Oxigen Services India aims to become India’s first
non-banked mobile wallet that empowers the
unbanked masses to instantly transfer and receive
cash across the entire country.
Its money transfer services are currently transacting
at USD2.3 million per day, increasing exponentially
through its connectivity with the National Payment
Corporation of India. This provides instantaneous
services to its retail network in India.
BLUE LABEL MEXICO
In the comparative year, BLM incurred losses to the
equivalent of R113 million of which the Group’s share
equated to R51 million after the amortisation of
intangible assets. In the current year, BLM’s losses
increased to an equivalent of R131 million, of which
the Group’s share equated to R61 million. Of this
amount, R9 million was attributable to foreign
exchange movements.
Although revenue in local currency increased by 43%,
increases in expenditure and depreciation,
necessitated by an aggressive roll-out of point-of-sale
devices and ancillary support required thereon, were
the fundamental causes for the increase in losses.
At the end of the financial year, 91 409 point-of-sale
devices had been installed.