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business overview
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Founded 2001, listed on JSE (2007)
2008 actual revenue: R12,55 billion
Employees: 1 800
Headquarters: Johannesburg – offices throughout
South Africa
Operations: Africa, India, Europe (Latin America and
Australia post year-end) |
Key shareholder: Microsoft Corp owns 12% of BLT and
38,85% of Oxigen India
Retail points-of-presence: In excess of several hundred
thousand
Transactions: ±400 million separate monthly
transactions
Clients include: Ackermans, Clicks, Metcash, Mr Price,
PEP, PnP, Shoprite, SPAR |
- The high volume distribution and sale of e-tokens
of value and complementary services leveraging
off a favourable working capital cycle.
- Globally: focused on serving all consumers within
the world’s economic pyramid
- Locally: focused on serving the total domestic
market, in particular unbanked or badly banked
consumers
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- 60% share of local prepaid airtime market (South
Africa’s total prepaid airtime revenue for the last
year is estimated to be R20,3 billion of which
R12,2 billion was distributed by group related
companies)
- Group’s approximate minutes of use sold
Vodacom: 68%; MTN: 18%; Telkom: 10%; and
Cell C: 4%
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| Trading revenue from sale of e-tokens
As a super distributor of virtual and physical mobile
and fixed line prepaid airtime, the group earns a
margin on the sale of e-tokens through its wholesale,
retail and merchant distribution footprint
The current economic slowdown has seen many
postpaid consumers migrate toward prepaid in
order to enhance their financial flexibility and control
their airtime spend. In general, prepaid consumers
are purchasing airtime in lower denominations
whilst also benefiting from the variable call discounts
recently introduced by the major mobile networks |
Trading and annuity revenue from sale of starter
packs
Activation bonus
The group activates in excess of 200 000 starter
packs per month – earning a rebate on each
successful activation
Retention revenue
In addition, the group earns ongoing annuity revenue
for the life of each starter pack and has successfully
introduced loyalty campaigns to decrease the churn on its starter pack base to less than 25% per annum |
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Annuity revenue from subscription based services
- The group earns annuity revenue from its
subscription based businesses and customer
retention remains a key focus
- Launching additional product and service offerings
to new and existing subscriber bases enhances
annuity revenue
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Interest income
- The group’s high volumes coupled with its
favourable trading terms, generate significant
interest income
- South Africa’s inflation rate is not expected to return
to its target range of 3% to 6% before 2010.
- Interest rates are therefore likely to remain within
their current range in the short to medium term
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