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BLUE LABEL INTEGRATED ANNUAL REPORT 2014
AIRTIME
CHAIRMAN’S
REPORT
CONTINUED
Cash generated of R907 million from operating
activities resulted in cash resources accumulating to
R1.2 billion net of cost of acquisitions.
On 19 August 2014, the Board approved ordinary
dividend No 5 of 27 cents per share (2013: 25 cents
per share), which equated to a dividend cover of
2.48 times on headline earnings.
The Board acknowledges that exemplary leadership
requires directors to keep a steady eye on the
long-term corporate goals, always cognisant of
potential movement in the industry going forward.
The Audit, Risk and Compliance Committee assists
the Board in identifying and assessing material risks to
the Group, with the aim of supporting enterprise-
wide risk management. The report of the Committee,
as well as the summary of material impacts and risks
are included in this integrated annual report.
Given that the Group is driven by advanced
technology, there is a strong focus on technology
governance and skills.
In taking cognisance of relevant changes to the
legislative environment, the Board is reviewing potential
transition arrangements to ensure compliance with the
Broad-Based Black Economic Empowerment Act.
Through the activities of the Social, Ethics and
Transformation Committee, expenditure on uplifting
communities reached R5.1 million. This spend was
mainly directed towards the Boys and Girls Clubs of
South Africa and other youth programmes, along
with HIV/Aids and health awareness programmes,
where our support continues, as co-founders, of
parkrun SA.
Looking ahead the Group expects that the recent
acquisition of RMCS and Viamedia will enhance
profitability, and will afford it access to new products
and services, as well as to new distribution channels.
The Group’s propensity to generate positive cash
flows from its operating activities will continue to
facilitate opportunities, both on an acquisitive and
trading basis, as well as for the distribution of
dividends to shareholders. The growth in rolling
out prepaid electricity meters is likely to continue,
enhancing future revenues.
TicketPros, our ticketing provider, continues to
expand its service offering to a myriad of events
and activities.
The Group’s distribution footprint is perfectly
positioned to offer a money transfer solution
extending its reach across all sectors of the South
African economic landscape.
On the international front, Oxigen Services India’s
mobile wallet, which facilitates instant money
transfers, is expected to gain momentum. Blue Label
Mexico continues with its objectives of expanding its
footprint and increasing the range of its product and
service offerings.