Blue Label Telecoms Integrated Annual Report 2019

8 Blue Label integrated annual report 2019 u u Blue Label has managed to grow gross transactional values which includes imputed PINless revenue and electricity by 10% to R57.8 billion. A strong performance given South Africa’s currently weak economic environment. u u On exclusion of the negative impacts as detailed below*, core headline earnings increased by 26% to R904 million. The RITE strategy and the six capitals continued TRUST REACH INNOVATION EFFICIENCY FINANCIAL CAPITAL The pool of capital available to Blue Label, including debt, equity and cash generated from operations and investments. OUTCOMES u u Driving financial inclusion within previously underserved markets through the growth of our hub and spoke model into informal markets in South Africa. u u Enhanced reach in Group accounts across the retail and banking sectors. u u Revenue assurance solution developed by Cigicell is being rolled out to further municipalities across South Africa. u u Ticketpro has increased its sales network to more than 2 000 stores in South Africa – the country’s largest physical ticket purchase network. u u R209 million capex devoted to investing in technology and point-of-sale devices. u u Launching first truly home-grown near field communication (NFC) solution. u u The ability to reconcile over one billion physical cash and virtual payments a month builds trust with suppliers, merchants and customers. u u The Group has spent R68 million on different types of vending terminals that suit our wide variety of customers. These terminals control the front-end processing for our billions of transactions. u u Municipalities trust Cigicell to collect their prepaid electricity and water revenue as well as rates and taxes. u u An efficient treasury function primarily within The Prepaid Company and Cigicell are vital to the acquisition and wholesaling of all products and supporting our funding of electricity projects. An efficient treasury function is essential to the success and profitability of our business. u u Capital allocation and risk assessment functions are a daily consideration in growing our business. R I T E * On exclusion of the negative impact attributable to: u u Cell C’s trading losses, impairment of certain of its property, plant and equipment, the impact of the derecognition of its deferred tax asset and the impairment of Blue Label’s total investment in Cell C; u u Fair value downward adjustments of the exposure relating to SPV1 and SPV2 pertaining to the initial recapitalisation of Cell C and the Glocell loan; u u An impairment of Blue Label’s total investment in the Oxigen India group, including 2Dfine Holdings Mauritius, as well as providing for loan impairments and guarantees payable therein; and u u Partial impairments of goodwill and an investment in a joint venture.