Technology27.05.2008
Higher-margin clients take top spot
Amid an outcry over its performance, Business Connexion (BCX) would not sign new clients below profitability thresholds, but would focus on higher-margin clients that delivered quality earnings, it said last week.
This is part of its revitalisation programme which aims to improve profitability.
In the six months to November BCX earned revenue of R2 billion with profit at R43 million.
It has about 1 650 clients but only 2 percent contribute 61 percent of its revenue, while 88 percent, mainly small, micro and medium enterprises, generate 13 percent.
BCX would review or exit its contracts with these low-margin clients.
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