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BLUE LABEL INTEGRATED ANNUAL REPORT 2015
nature of and the methods in which we sell and
distribute our products and services, we find
ourselves acting as an agent more often than not.
This results in only the commission earned and not
the face value of the sale being included in revenue.
These products and services include electricity, ticket
sales and PINless products. If the gross value of
PINless products were to be included in the revenue
line, Group revenue would have effectively increased
by 17% as opposed to 13%.
Revenue increased by 13% to R22 billion and was
achieved organically and through contributions
made through the acquisitions of RMCS and
Viamedia. Gross profit increased by 22% to
R1.64 billion supported by margin increases from
6.96% to 7.46%.
Our financial position remains robust and liquid,
with accumulated equity increasing to R3.9 billion,
net of accumulated dividends paid to date totalling
R704 million. Net asset value equated to R5.79 per
share. Operations continue to generate strong levels
of cash, enabling the group to deliver its strategy, as
well as to conclude strategic acquisitions and to
declare dividends to shareholders.
DEEPENING OUR PRODUCT RANGE
TicketPro
is South Africa’s second largest ticketing
solution for transport and events, such as sports,
entertainment, concerts, lifestyle shows and expos.
TicketPro’s focus this year included increasing its
market share, gaining brand recognition and striving
for market differentiation, through product and
technology innovation.
Prepaid water:
In taking product to the population,
we are replicating the successful prepaid electricity
model in the distribution of prepaid water e-tokens.
In this regard, there is continued dialogue between
ourselves, municipalities, water boards, water meter
suppliers and service providers, township developers,
closed communities and other special interest
groups, with a view to maximising on this vast
2014, the MNOs recognised the importance of
introducing product and service distribution into the
distribution channel. The importance to the Group
is that we manage the last mile of the distribution
channel as well as the products and services that
are introduced.
India
has a population of about 1.3 billion people,
of which approximately 65% are unbanked. The
new government continues to create a positive
economic environment, with the Reserve Bank of
India driving its financial inclusion programme.
Oxigen Services India continues to benefit from the
country’s exponential growth in e-commerce and
m-commerce, as the business capitalises on its
strategic shift into financial services. In this dynamic
market, recent M&A deals have reinforced the value
of Oxigen’s distribution network and banking
enabled infrastructure.
Mexico
has a mobile phone penetration of around
67% in a market serving a population of
approximately 121 million.
Structural and fiscal reforms have resulted in
increasing competition among the networks. In
September 2014 Blue Label Mexico implemented a
strategic decision to become a multi-carrier – for all
networks. Although this initially came at a cost, as
the dominant player immediately reduced
commissions, which resulted in an exacerbation of
losses, it has taken us approximately nine months to
recover. Only recently has the reduction been more
than offset by an increase in both terminal activity
and commissions earned from the other carriers.
Our stated game plan is heading in the right
direction to yield some of the anticipated returns
in order to mitigate future losses.
MEASURING OUR PERFORMANCE
We do not gauge revenue as our only measure of
performance. We believe growth should also be
measured by gross profit achieved. Due to the
CONVERSATION WITH JOINT CHIEF EXECUTIVE OFFICERS
CONTINUED