Blue Label Telecom to Offer Prepaid Water Services

Blue Label joint-CEO Mark Levy said the group was working with two small municipalities and expected to add more in the near future as more municipalities roll out water meters in Maxico

BLUE Label Telecoms is adding prepaid water to its portfolio in a move that will further grow its prepaid business, which is one of the key contributors to group earnings.

Blue Label's main business is the distribution of prepaid products including electricity and airtime, and distribution of cellphone starter packs

Blue Label joint-CEO Mark Levy said the group was working with two small municipalities and expected to add more in the near future as more municipalities roll out water meters.

"Consumers are already educated about prepaid and there has been a lot of talk about this, so I don't think it will be a hard sell." But Mr Levy stressed that Blue Label's role was to sell pre-paid vouchers on behalf of municipalities and the firm did not set prices.

Blue Label's net commissions earned on the distribution of prepaid electricity increased by R12m to R79m on revenue of R5.3bn generated on behalf of the utilities.

In the six months to November, headline earnings per share rose 15% to 42.7c.

This growth was achieved in spite of the group's share of losses in Blue Label Mexico increasing by R14.5m, negatively affecting growth in headline earnings per share by 2.17c.

Revenue increased to R10.3bn from R9.07bn in the previous period.

The South African distribution business increased revenue 14%, predominantly through access to additional channels of distribution.

Source: BDLive

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• Water Management
• Governance & Planning