The distribution of prepaid products and services remains a key growth sector in developing economies and Blue Label Telecoms' proven ability to support this market is nsuring continued success for the group.
Blue Label released interim results today, showing a 23% increase in revenue and a 27% increase in operating profit. The group's South African distribution continued to contribute most of its revenue, but it did note that it would be looking to grow its global presence.
"Blue Label is well established, with mature routes to market, strategic alliances and partnerships," says Frost & Sullivan ICT industry analyst Lindsey Mc Donald. "It is therefore in a strong position to take advantage of the additional growth likely to take place in this market."
The company's early presence in this sector has assured it first-mover advantage. While it does face increased competition on all fronts, the fact that it is more established than its counterparts is expected to stand it in good stead.
While the current economic conditions mean that consumers may have less disposable income, it also puts people in a position where they want to be in control of their finances. The ability to make use of prepaid services allows them to do just this.
Blue Label recently concluded a deal with Multilinks Telecommunications, a subsidiary of Telkom in Nigeria. This will give them access to this country's lucrative mobile market through its own subsidiary Africa Prepaid Services.
"The greater uptake in prepaid services is expected to boost Blue Label's business over the coming year," Mc Donald adds. "Growth from African markets such as Nigeria and other West African countries is likely to improve the company's prospects."