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BLUE LABEL INTEGRATED ANNUAL REPORT 2015
INTERNATIONAL
The strategy of the International
Distribution segment is to pursue growth
opportunities for Group products and
services across its global footprint, by
systematically rolling out points
of presence, in a replication of the proven
South African business model. As at the
end of March 2015 the Group disposed
of its non-controlling interest in Smart
Voucher Limited, trading as Ukash.
Blue Label Mexico
The business in Mexico encapsulates a number of
agreements with key participants in the sales and
distribution channels, including the major network
operators and the world’s largest bakery, Grupo
Bimbo, a joint 46.64% shareholder with Blue Label
in BLM.
In September 2014 BLM implemented a strategic
decision to become a multi-carrier for all networks.
This initiative was costly to BLM in that the
dominant network immediately reduced BLM’s
commission. As a result thereof, it took nine months
to regain lost ground incurred, during which both
terminal activity and commissions earned from
other carriers increased.
OPERATIONAL OVERVIEW
CONTINUED
The project to expand the distribution network
across Mexico progresses steadily with some
62 000 terminals active at present. BLM continues
to redeploy underperforming devices and to retrofit
mature devices to include financial services
transaction capabilities.
Products and services on offer through BLM’s
technology platform continue to expand. The range
now includes PINless recharge, bill payments, cash
collections, card acquiring through Banamex and
Visa and digital food vouchers through all five major
distributors. Distribution of SIM cards through most
of the major networks and an international money
transfer service are currently being piloted.
Blue Label’s share of losses for the year amounted to
R89 million (2014: R60.8 million loss), consistent
with continued margin compression and an increase
in overhead costs.