Blue Label’s resources are divided into six capitals by the <IR> Framework, which considers how an organisation’s operations and results impact or change these resources. We weigh the trade-offs between the various value drivers and every choice we make aims to maximise benefits and minimise drawbacks.
CAPITALS
INPUTS
Property, plant and equipment to the value of R88 million, including:
Includes continuing subsidiary operations. Excluding offshore, discontinued and sold operations, as well as associate and joint ventures.
2024 | 2023* | |||||||||
R'000 | Usage | R'000 | Usage | % increase/(decrease) in spend | % increase/(decrease) in usage | |||||
Electricity | 4 372 | 1 827 047 | kWh | 4 017 | 2 038 978 | kWh | 9 | (10) | ||
Water | 696 | 12 420 | KL | 552 | 11 356 | KL | 26 | 9 | ||
Petrol | 9 459 | 401 950 | L | 13 664 | 584 780 | L | (31) | (31) | ||
Diesel | 2 358 | 95 924 | L | 2 671 | 104 763 | L | (12) | (8) | ||
Paper | 205 | 7 390 | kg | 195 | 7 255 | kg | 5 | 2 |
A strong balance sheet and sufficient working capital to fund the operations that support long-term sustainability
Economic benefits for stakeholders:
Our business model and the use of the capitals to create value for all our stakeholders are underpinned by robust corporate governance, as outlined on ESG Reporting index.
Short-term investment
vs long-term benefit
There is an important trade-off between short and long‑term investment associated with financial capital.
It is important to balance the interest of short-term benefits with those of long-term sustainable growth objectives. While both are important for different stakeholders at different times, it is a key focus in our strategic decision-making process.
Automation and
human capital
Automation of routine tasks through technology may in the long term reduce human capital. Blue Label's approach is to find value-creating opportunities in new and evolving technologies that support our employees and our communities in their work.
Fast-paced innovation
Our technical innovation and entrepreneurial drive are central to effectively serving the unbanked market segment and those without access to technology. The adoption of new technologies, as well as processes and systems that are faster and more efficient, requires effective change management with employees and subsidiaries.
Responding to social and
environmental issues
Climate change is increasingly in the spotlight as the effects of global warming start to show up in severe weather events across the world. At the same time, social challenges and inequality are thrown into sharp relief, especially in developing countries. In choosing where best to allocate Blue Label's financial resources to make the world a better place, we consider solving social issues as central to our purpose and vision and therefore more material.
Blue Label’s varied product and service offering enables us to provide mainstream products and services to a broader clientele. Blue Label’s divisions are illustrated below. (Unless otherwise stated, all entities are wholly owned by Blue Label).
Blue Label Distribution (BLD) is a specialist in prepaid products and the electronic distribution of virtual merchandise across South Africa. They have an extensive distribution network that includes banks, retailers, spaza shops, informal traders and petroleum forecourts.
TicketPro allows customers access to exclusive transport services, travel services, sporting events and entertainment.
BluAdvance provides qualified customers the opportunity to take out a prepaid electricity advance on their meter, with the ability to pay it back at a later stage.
Comm Equipment Company (CEC) is a business unit responsible for Cell C postpaid offerings.
T3 Telecoms SA (50% shareholding) is a mobile value-added services and product distribution company.
Blue Label Connect (BLC) distributes tailor-made hybrid top-up airtime and data contracts.
BluNOVA has become one of the leading practitioners of data and decision science in South Africa. They have deployed a state-of-the-art decision engine that supplies intelligent data leads and assists in securing new business.
Aligned Partnered Solutions (APS) (50% shareholding) provides operational and IT consulting services to Blue Label Connect.
Blue Label One is engaged in media advertising.
AltBureau is a data bureau based on API marketplace technology, serving as a platform to provide services to both external and internal clients.
The Prepaid Company (TPC): As the premier distributor of prepaid airtime and starter pcks for all the major South African network operators, TPC leverages trusted proprietary technology to ensure purchasing efficiency and robust inventory control.
GloCell Distribution: GloCell Distribution’s core strategy centres around the distribution of starter packs through its well-established channels.
Robtronics Service Solutions (51% shareholding): specialises in repairing mobile devices and managing the reverse logistics process to support the repair operations.
GloCell Retail Solutions (GCRS): is a distributor of prepaid products and value-added services for all major network operators. It supplies these offerings to various retailers, including national chains and petroleum forecourts.
Dunoworx (25.79% shareholding): provides mobile handset repair services to the Cell C customer base and sells and distributes second-hand mobile handsets.
Blue Label Data Solutions (BLDS) (81% shareholding): is a market leader in consumer data, big data, validation and verification, data cleansing and lead creation.
Blu Train Group (64.57% shareholding): offers learnerships, training, recruitment and payroll services.
Blue Label Communications (50.3% shareholding): provides three business verticals: data, SMS and reverse data billing.
Cell C Limited (Cell C) (49.53% shareholding): is a mobile operator in South Africa.
Transaction Junction (60% shareholding):a business enablement platform offering tailored digital payment solutions for companies across a wide range of markets.
LIPA Payments (36% shareholding): is a payment software solution designed for banks and fintechs, enabling small merchants to process digital transactions through NFC and Bluetooth technology.
Cigicell (74% shareholding): collaborates with municipalities to enhance their revenue streams by offering prepaid electricity and water services.
ReWare provides smart meters that accurately track electricity usage, helping to monitor, verify and manage energy consumption.
Utilities World (25.1% shareholding): primarily focuses on designing prepayment revenue management software. In addition to this, the company handles the design, manufacturing and installation of prepaid electricity meters. Their systems have been utilised by local municipalities in South Africa and abroad for several years.
VISUAL Revenue Management (VRM) (74% shareholding): is a crucial partner and strategic player in South Africa's municipal sector, VRM is focused on revenue management, spatial data solutions and infrastructure development.
iCrypto (14.29% shareholding): enables organisations to eliminate cyber risks such as identity theft, access breaches, data breaches and ransom attacks, while enforcing compliance through technology‑leveraging biometrics and tokenised identity.
Mobii Systems Group (29.9% shareholding): specialises in game analytics and offers products powered by Internet of Things (IoT) technology.