Blue Label Telecoms Integrated Annual Report 2014

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74 BLUE LABEL INTEGRATED ANNUAL REPORT 2014
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Jun 2009Nov 2009Apr 2010Sept 2010Feb 2011Jul 2011Dec 2011May 2012Oct 2012Mar 2013Aug 2013Jan 2014Jul 2014
ELECTRICITY SALES FIVE-YEAR TREND (million)
■ Electricity sales
OPERATIONAL OVERVIEW CONTINUED
Potential additional drivers to growth include
smart meter installation projects ramping up at
municipalities across the country, as well as the
increasing revenue collection campaigns at
municipalities.
In respect of the sale of prepaid electricity, the Group
acts as an agent and not as a principal. Therefore only
commissions earned and not the face value of
electricity sales are included in reported revenue.
Turnover generated on behalf of the utilities increased
to R8.8 billion in the current year (2013: R7.2 billion).
The commission earned thereon equated to
R133 million (2013: R113 million).
Cigicell distributes virtual prepaid airtime and
electricity through a broad network of channels,
including formal and informal retail and electronic
banking environments. It is responsible for managing
the numerous distribution contracts with utilities in
respect of the distribution of prepaid electricity tokens.
Event and transport ticketing
TicketPros, South Africa’s most recent ticketing
solution, provides event and transport ticketing,
including sport, travel, entertainment, lifestyle and
expos. It also offers the convenience of a variety
of ticketing types, such as NFC, card, home-print,
secure-print and till-print.
TicketPros intelligently assesses accumulated data
with a view to understanding consumer behaviour.
This is achieved by combining information gained via
loyalty programmes and reward cards. This enables
promoters to understand consumer behaviour and
buying patterns and ultimately delivers a unique
experience to consumers, while enhancing marketing
channels for sponsors and brand owners.
RMCS is an enhanced service provider of cellular
products and services engaged in the supply of
telecommunication products and services, content,
data and allied activities via both physical and virtual
mediums. The physical presence is in the form of
stores and the virtual offering is in the form of an
“Over the Air” cellular application which enables
retailers, credit providers and consumers to
communicate and transact over their mobile devices.
The recent acquisition of RMCS affords the Group
access to new channels for the distribution of both
RMCS and its products and services.
Prepaid electricity
The supply of prepaid electricity tokens on behalf of
the utilities is based on the same model as that of
prepaid airtime. Blue Label has been vending prepaid
electricity for the past 10 years and is a leading
distributor in this field.
The growth in prepaid electricity commissions earned is
due to a combination of factors:
➔ An increasing number of distributor contracts
signed with municipalities.
➔ Increasing uptake of prepaid electricity by
consumers who are installing prepaid residential
meters.
➔ Widespread usage of the Group’s proprietary
UniPIN product, in both online and offline
environments.
➔ Electrification of new and existing government
housing developments.
SOUTH AFRICAN DISTRIBUTION
AIRTIME