Blue Label Telecoms (JSE:BLU) Operating Income : R1,915 Mil (TTM As of Nov. 2023)

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What is Blue Label Telecoms Operating Income?

Blue Label Telecoms's Operating Income for the six months ended in Nov. 2023 was R771 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Nov. 2023 was R1,915 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Blue Label Telecoms's Operating Income for the six months ended in Nov. 2023 was R771 Mil. Blue Label Telecoms's Revenue for the six months ended in Nov. 2023 was R7,581 Mil. Therefore, Blue Label Telecoms's Operating Margin % for the quarter that ended in Nov. 2023 was 10.18%.

Good Sign:

Blue Label Telecoms Ltd operating margin is expanding. Margin expansion is usually a good sign.

Blue Label Telecoms's 5-Year average Growth Rate for Operating Margin % was 18.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Blue Label Telecoms's annualized ROC % for the quarter that ended in Nov. 2023 was 13.77%. Blue Label Telecoms's annualized ROC (Joel Greenblatt) % for the quarter that ended in Nov. 2023 was 141.81%.

Blue Label Telecoms Operating Income Historical Data

The historical data trend for Blue Label Telecoms's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Blue Label Telecoms Operating Income Chart

Blue Label Telecoms Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

Operating Income

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1,216.68

1,116.62

1,151.70

1,788.96

1,851.59

Blue Label Telecoms Semi-Annual Data
	May14	Nov14	May15	Nov15	May16	Nov16	May17	Nov17	May18	Nov18	May19	Nov19	May20	Nov20	May21	Nov21	May22	Nov22	May23	Nov23
Operating Income	Get a 7-Day Free Trial															960.88	828.09	707.90	1,143.69	771.47

Blue Label Telecoms Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Nov. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was R1,915 Mil.

Blue Label Telecoms (JSE:BLU) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Blue Label Telecoms's annualized ROC % for the quarter that ended in Nov. 2023 is calculated as:

	ROC % (Q: Nov. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: May. 2023 )	+	Invested Capital (Q: Nov. 2023 ))	/ count )
=	1542.932 * ( 1 - 21.35% )	/	( (8315.861	+	9312.024)	/ 2 )
=	1213.516018	/	8813.9425
=	13.77 %

where

	Invested Capital		(Q: May. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	14718.31	-	5415.787	-	( 1376.712	-	max(0, 8031.576	-	9018.238	+	1376.712	))
=	8315.861

	Invested Capital		(Q: Nov. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	14487.837	-	5107.17	-	( 1134.126	-	max(0, 8836.235	-	8904.878	+	1134.126	))
=	9312.024

Note: The Operating Income data used here is two times the semi-annual (Nov. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Blue Label Telecoms's annualized ROC (Joel Greenblatt) % for the quarter that ended in Nov. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Nov. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: May. 2023		Q: Nov. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	1969.294	/	( ( (248.939 + max(-392.049, 0))	+	(222.439 + max(2306.058, 0)) )	/	2 )
=	1969.294	/	( ( 248.939	+	2528.497 )	/	2 )
=	1969.294	/	1388.718
=	141.81 %

where Working Capital is:

	Working Capital		(Q: May. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(315.025	+	555.81	+	4529.095)	-	(5415.787	+	0	+	376.192)
=	-392.049

	Working Capital		(Q: Nov. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(3496.876	+	2828.768	+	1125.266)	-	(5107.17	+	0	+	37.682000000001)
=	2306.058

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Nov. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Blue Label Telecoms's Operating Margin % for the quarter that ended in Nov. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Nov. 2023 )	/	Revenue (Q: Nov. 2023 )
	=	771.466	/	7581.356
	=	10.18 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Blue Label Telecoms Operating Income Related Terms

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Blue Label Telecoms (JSE:BLU) Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Blue Label Telecoms Ltd (JSE:BLU) » Definitions » Operating Income

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Address

75 Grayston Drive, Corner Benmore Road, Morningside Extension 5, Sandton, Johannesburg, GT, ZAF, 2196

Website

https://www.bluelabeltelecoms.co.za

Blue Label Telecoms Ltd is a technology company. It derives revenue from the distribution of airtime and mobile transaction services. It operates through four segments: African Distribution, International, Solutions and Corporate. African distribution includes the distribution of physical and virtual prepaid airtime and electricity of the South African telecommunication and utilities companies. International includes the distribution of physical and virtual prepaid airtime in India and Mexico and payment solutions in India. Solutions include the provision of a mobile transactional platform and the marketing of mobile and financial products. The company generates the vast majority of its revenue in South Africa.