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Blue Label Telecoms (JSE:BLU) Operating Margin % : 4.50% (As of May. 2024)


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What is Blue Label Telecoms Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Blue Label Telecoms's Operating Income for the six months ended in May. 2024 was R315 Mil. Blue Label Telecoms's Revenue for the six months ended in May. 2024 was R7,017 Mil. Therefore, Blue Label Telecoms's Operating Margin % for the quarter that ended in May. 2024 was 4.50%.

Good Sign:

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

The historical rank and industry rank for Blue Label Telecoms's Operating Margin % or its related term are showing as below:

JSE:BLU' s Operating Margin % Range Over the Past 10 Years
Min: 4.36   Med: 5.22   Max: 10.05
Current: 7.45


JSE:BLU's Operating Margin % is ranked worse than
56.32% of 380 companies
in the Telecommunication Services industry
Industry Median: 9.38 vs JSE:BLU: 7.45

Blue Label Telecoms's 5-Year Average Operating Margin % Growth Rate was 7.90% per year.

Blue Label Telecoms's Operating Income for the six months ended in May. 2024 was R315 Mil. Its Operating Income for the trailing twelve months (TTM) ended in May. 2024 was R1,087 Mil.


Blue Label Telecoms Operating Margin % Historical Data

The historical data trend for Blue Label Telecoms's Operating Margin % 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.

* Premium members only.

Blue Label Telecoms Operating Margin % Chart

Blue Label Telecoms Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.28 6.12 10.05 5.89 7.45

Blue Label Telecoms Semi-Annual Data
Nov14 May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.53 7.21 4.47 10.18 4.50

Competitive Comparison of Blue Label Telecoms's Operating Margin %

For the Telecom Services subindustry, Blue Label Telecoms's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Blue Label Telecoms's Operating Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Blue Label Telecoms's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Blue Label Telecoms's Operating Margin % falls into.



Blue Label Telecoms Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Blue Label Telecoms's Operating Margin % for the fiscal year that ended in May. 2024 is calculated as

Operating Margin %=Operating Income (A: May. 2024 ) / Revenue (A: May. 2024 )
=1086.959 / 14598.444
=7.45 %

Blue Label Telecoms's Operating Margin % for the quarter that ended in May. 2024 is calculated as

Operating Margin %=Operating Income (Q: May. 2024 ) / Revenue (Q: May. 2024 )
=315.493 / 7017.088
=4.50 %

* 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.


Blue Label Telecoms  (JSE:BLU) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

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 (Diluted) 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 Margin % Related Terms

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Blue Label Telecoms Business Description

Traded in Other Exchanges
N/A
Address
75 Grayston Drive, Corner Benmore Road, Morningside Extension 5, Sandton, Johannesburg, GT, ZAF, 2196
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.