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BLUE LABEL
INTEGRATED ANNUAL REPORT 2017
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Operational overview
continued
Edgars Connect
Edgars Connect is managed in
partnership with the Edcon Group. It
represents our strategic reach into the
retail channel in serving customers in
“the last mile”. Edgars Connect is our
one-stop connectivity destination store
across the nation, currently with
64 standalone outlets.
It offers premium brands, specialist
services and expert advice. The
extensive range of products and
services includes mobile devices,
tablets, wearables, accessories,
gadgets, smart home concepts and
automation, wifi routers, laptops and
a host of convenience items and
services such as airtime, data, bill
payments and ticketing.
Hardware, including handsets
and tablets
The Group distributes tier 3 hardware,
such as handsets, tablets and phablets,
under proprietary brand names such
as Boost, Verssed and Blaupunkt.
The product suite was recently
augmented by smart watches and
fitness bands. The Group’s subsidiary,
Reware, refurbishes and distributes
preowned tier 4 smartphones through
its outlets in Sandton and
Braamfontein.
The Group’s acquisition of 3G Mobile,
offering tier 1 and tier 2 handsets,
complements our hardware offering.
Through its wholly owned subsidiary
Comm Equipment Company, it
provides financing of the handset
element of postpaid and hybrid
contracts on behalf of networks.
Prepaid electricity and water
The Group has been vending prepaid
electricity for the past 13 years and
is a leading distributor in this field.
Commissions earned on the supply
of prepaid electricity equated to
R215 million on sales of R14 billion
generated on behalf of utilities. The
Group acts as an agent and not as a
principal in respect of sales, resulting
in only the commissions earned
thereon, and not the face value of
sales, being accounted for in revenue.
Blue Label owns 50.1% of Prepaid24,
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. The Group benefits
from the re-award of distribution
contracts by utilities and
municipalities, distribution on behalf
of additional municipalities, and
growth in vending tokens in the retail
and corporate channels.
X
Formal retail
36%
X
Corporate sales
32%
X
Independents
17%
X
Petroleum
15%
Electricity
TicketPro
TicketPro is South Africa’s second
largest ticketing company and
continues to expand into the sports,
events, exhibitions, transport and
travel ticketing sectors. Its
sophisticated ticketing engine enables
the administration of all forms of
ticketing, including 1D, 2D, NFC,
secure print, home print and till slips.
TicketPro’s ticketing platform is also one
of the most innovative in the country,
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,
complementary ticket management,
tailor-made accreditation systems and
state-of-the-art access control,
including NFC and season ticket
functionality.
The extensive distribution channel
expanded further this year with the
availability of ticketing across the Spar
chain. Its large retail footprint and
extended trading hours are particularly
convenient for consumers.