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BLUE LABEL INTEGRATED ANNUAL REPORT 2016
Operational overview
continued
Blue Label Distribution
Blue Label Distribution is the largest
distributor of virtual vouchers, with
over 150 000 distribution points. It
offers tailormade and specialised
solutions enabling virtual products
and services to reach a diverse
distribution footprint.
Distribution expands across all
segments of the market and includes
corporates (insurance, banking), retail
(food and non-food retailers),
petroleum forecourts, independent/
informal channels (Moms & Pops/
spaza shops), store-in-store and
standalone stores (Edgars Connect).
Products and services are enabled
in several ways, which include
connectivity to terminals, touch
screens, vending machines, self-
service terminals, mobile platforms
and third-party integration into
existing POS software and mobile
channels.
Business is supported by eight
regional offices located in
Johannesburg, Polokwane,
Mbombela, Bloemfontein, Durban,
Port Elizabeth, East London and Cape
Town. Regional offices ensure that
customer support teams are in close
proximity to merchants in providing
them with service and field support.
Blue Label Connect
Blue Label Connect distributes
tailormade hybrid top-up airtime and
data contracts on behalf of all major
South African cellular networks. These
may be purchased as a SIM only
package or alternatively bundled with
mobile phones, tablets and
accessories.
Blue Label Connect, through its over
the air mobile platform, enables
retailers to extend their customers’
offerings into the digital space in
order to maximise convenience for
customers. Its cost-effective mobile
platforms allow customers to
purchase products and services
utilising their mobile phones.
Edgars Connect
Blue Label in partnership with the
Edcon Group, has rolled out
53 Edgars Connect standalone stores,
with a view to expanding this concept
nationally.
Edgars Connect is a specialty store in
which customers are able to access a
variety of products, including various
types of handsets, tablets, prepaid,
hybrid top-up and post-paid options,
telephony accessories, the full product
offering under the Blu Approved
brand, as well as the TicketPro range
of tickets.
Prepaid electricity
and water
The supply of prepaid electricity
tokens on behalf of the utilities is
based on the same model as that of
prepaid airtime. Blue Label has been
vending prepaid electricity for the past
12 years and is a leading distributor in
its field.
The commission earned
thereon equated to R197 million
(2015: R165 million). The Group acts
as an agent and not as a principal in
respect of electricity and water sales,
resulting in only the commissions
earned thereon, and not the face
value of sales, being accounted for in
revenue. In the current year turnover
generated on behalf of the utilities
increased to R12.1 billion (2015:
R10.4 billion).
Recently, the Group acquired a
controlling equity interest in Prepaid 24,
an online vendor of prepaid products
and payment services via the web, as
well as a 25.1% stake in Utilities World,
a provider of revenue management
software and services to municipalities.
Through these partnerships the Group
expects to expand its customer base
and product offerings to municipalities,
as well as broaden its model into the
rest of Africa.
Eskom’s campaigns informing
consumers of the benefits of
converting to prepaid electricity has
resulted in a continued increase in
demand.
TicketPro
TicketPro’s ticketing platform is one of
the most innovative in South Africa,
offering promoters, event organisers,
stadiums, transport and travel
companies a single turnkey ticketing
system. It offers flexible payment
options, CRM functionality with
extensive and customisable reporting,
complimentary ticket management,
tailormade accreditation systems and
state-of-the-art access control,
including NFC and season ticket
functionality.
TicketPro is South Africa’s second
largest ticketing company. Its
ecosystem continually expands as it
reaches deeper into sports, events,
exhibitions, transport and travel
ticketing sectors. All ticket types are
administered, including 1D, 2D, NFC,
secure print, home print and till slip
ticketing.
Distribution channels include Edgars,
Edgars Active, Edgars Connect, Jet,
Jet Mart, CNA, Samsung and
Choppies. Direct ticket sales and
collections are also available at
PostNet branches.