JSE-listed Blue Label Telecoms will launch "a number of innovative financial services products, aimed at bringing financial inclusion and transactional value to customers".
The company says these initiatives will benefit from the use of its mobile systems and leveraging its distribution network. Blue Label plays in the prepaid sector and sells vouchers for products such as airtime and electricity.
In the six months to November, the group reported revenue of R9.5 billion, up from the previous corresponding period's R9.25 billion. It said headline earnings per share of 34.78c was a 26% gain thanks to the boost in revenue and less shares in issue after it bought back a 12% holding from Microsoft in December 2011.
During the previous half year, Blue Label introduced the vending of PIN-less top-ups as an additional mechanism for the distribution of prepaid airtime. It only counts gross profit from this mechanism, as opposed to gross revenue.
Blue Label adds that its gross profit benefited from the "exponential growth" in commissions from the distribution of prepaid electricity, as well as compounding annuity revenue earned from starter packs. Its "healthy" cash resources enabled the group to enter into bulk inventory purchase transactions totalling R1.5 billion, at favourable discount rates.
The South African distribution segment remains the predominant contributor to group earnings. Internationally, Ukash continued to increase profitability, and Oxigen Services India and Blue Label Mexico incurred losses.
Blue Label says it will launch products that will complement its existing product range and will be in the financial services sector.
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