@Lantic Internet Services, the specialist consumer ISP division in the AltX-listed DataPro Group, signed up 41 new franchisees during 2005, taking its number of franchise outlets in South Africa to 137.
During August DataPro acquired @Lantic - the largest independent consumer ISP (Internet service provider) in South Africa - for R45 million. In terms of the acquisition DataPro will acquire @Lantic`s 35 000-strong customer base, while retaining the @Lantic brand.
Jan Fourie, @Lantic`s general manager, said the company`s goal is to establish a total of 150 franchise outlets. "We are very pleased with our efforts during this year to add 41 outlets to the group. The new franchise outlets are scattered throughout SA and act to significantly expand our footprint and take our services into even more areas in the country."
New outlets were established in locations that include Westville (Durban), Pinetown....
Commenting on the costs of setting up a franchise, Fourie said franchisees paid "varying" franchise fees, depending on the location and the size of the population they serve.
Besides the company`s 137 franchise outlets it also boasts 500 active dealers - also distributed throughout South Africa. "We are probably better known in the Pretoria and Western Cape areas but we are hoping to expand our nationwide branding - and our new outlets will, naturally, assist us to achieve this."
"It is important to note that a large majority of the new franchisees were taken up by existing @Lantic franchisees. This emphasises the value members see in the distribution network that is supported by a solid customer management system - and the possibly returns they expect in the short and longer term."
The company generates monthly annuity revenue of around R3.5 million and notched up after tax earnings of R2.56 million for the year ended February 2005.
The @Lantic acquisition is DataPro`s second since listing last October. During March the company acquired Durban-based ISP, Wickhit, for just over R1 million. Investors may be familiar with @Lantic through their sponsorship of the Pumas rugby side.
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