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BUSINESS MODEL
AND STRATEGIC
OBJECTIVES
LEADERSHIP
GOVERNANCE
SHAREHOLDERS’
INFORMATION AND
ADMINISTRATION
OPERATING
PERFORMANCE
FINANCIAL
PERFORMANCE
BLUE LABEL INTEGRATED ANNUAL REPORT 2014
37
CONVERSATION WITH JOINT
CHIEF EXECUTIVE OFFICERS
CONTINUED
The popularity of PINless products continues to
grow as evidenced by consumer buying patterns. In
distributing PINless products, such as ‘direct top-ups’,
only the gross profit earned on such sales are
included in revenue. The same approach applies to
how we account for electricity sales, where we act
as the agent on behalf of the utilities and not as
principal. This means that only the commissions
earned by us, and not the face value of the sales,
are included in revenue. On imputing the gross sales
generated in PINless airtime, Group revenue
effectively increased by 6%.
Gross profit increased by R78 million to R1.35 billion
supported by margin increases from 6.70%
to 6.96%.
Operations continue to generate strong levels of cash,
enabling the Group to consider further acquisitions
and to continue to declare dividends to shareholders.
Brett Levy
Mark Levy
Joint Chief Executive Officers
22 October 2014