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BLUE LABEL
INTEGRATED ANNUAL REPORT 2017
73
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Prepaid airtime sales are
predominantly voucher based and
utilised for redeeming voice/data
top-ups. Growth in prepaid airtime
sales is driven further by “PINless”
or “direct” top-ups, as an alternative
redemption method for prepaid
airtime. The trend in consumers opting
for “PINless”, which is primarily sold
in the independent channel, continues
to escalate with sales increasing 49%
to R6.1 billion during the past year.
Growth in data sales is mostly derived
from the independent and corporate/
banking channels. The
chat 4 change
product continues to gain momentum,
further differentiating prepaid
offerings in the market.
SA Distribution’s prepaid starter
pack offers differentiation through
community driven SIM packs that are
pre-commissioned with community-
related added value and content. All
starter pack sales are tracked via
state-of-the-art software and systems
to ensure effective and accurate
reporting. Flexible RICA registration
solutions allow merchants to RICA SIM
cards via a terminal, USSD and online
from a mobile application.
Growth in sales is driven primarily
through the merchant base
increasingly selling more of our product
lines and the expansion of the
distribution footprint, both of which
are complemented by the increasing
range of products and value added
services.
Airtime
X
Independents
60%
X
Corporate sales
20%
X
Formal retail
10%
X
Petroleum
10%
X
Corporate sales
35%
X
Independents
31%
X
Formal retail
24%
X
Petroleum
10%
Data
The Prepaid Company (TPC)
TPC is the leading distributor of
prepaid products on behalf of all
major network operators. It facilitates,
manages and distributes all airtime
and data, as well as approximately
80 million bulk print vouchers per
month. In addition, TPC connects
over 700 000 starter packs monthly.
Services are supported by proprietary
technology, which ensures purchasing
efficiency, inventory control and
activation management.
TPC is responsible for supplier
agreements and procurement on
behalf of the Group, including
wholesale and community sales,
starter packs, handsets, tablets and
bulk airtime printing. Group treasury
falls under its ambit.
Cell C
Subsequent to financial year-end, Blue
Label announced that through its
wholly owned subsidiary, TPC, it had
concluded an agreement to participate
in the recapitalisation of the mobile
network operator, Cell C, by acquiring
a 45% interest in Cell C for
R5.5 billion. Since Cell C’s
recapitalisation on 2 August 2017, its
growth continues as it expands and
upgrades its mobile network coverage.
Approximately 16 million customers
now benefit from the latest
technologies, as well as innovative and
value-added products and services,
such as the recently launched content
and entertainment platform, black.
Blue Label Distribution
Blue Label Distribution is the largest
distributor of virtual vouchers, offering
bespoke solutions enabling virtual
products and services to reach a
diverse distribution footprint.
Distribution extends across all
segments of the market and includes
corporates (insurance, banking), retail
(food and non-food retailers including
pharmaceuticals), petroleum
forecourts, independent/informal
channels (Moms & Pops/spaza shops),
store-in-store and standalone stores.
Products and services are enabled in
several ways, including connectivity
to terminals, touch screens, vending
machines, self-service terminals,
mobile platforms and third-party
integration into existing POS software
and mobile channels.
The merchant base 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 service and
field support, while feeding back
requirements and future needs.