Blue Label’s “massive opportunity” in handset financing

While much of the current focus on Blue Label Telecoms is around its deal to buy a stake in Cell C, the company is keeping an eye open for other opportunities in the market.

Blue Label Telecoms recently reported its results for the six months ended 30 November, which included a rise in revenue of 3% to R13.2 billion.

Operating profit improved to R660 million, from R573 million.

Blue Label joint CEO Brett Levy told MyBroadband that one of the areas they see room to grow is handset financing.

Levy said around 20 million handsets are sold in South Africa each year, and he believes there is a “massive opportunity in financing lower and top-end” devices.

“The networks aren’t gung-ho on the finance side of it. They want the handset out and the SIM card – to add on their own finance is really not something they’re after,” he said.

“It is an opportunity for us, because we are very interested in that financing part of it.”

Levy said there is an option to establish a “Blue Label finance” product for stores, or a while label product which will be provided to the networks.

He said the financing solution would mainly cater for tablet and cellphone purchases, and other items related to the existing Blue Label business.

Now read: Cell C coming in with more firepower following Blue Label deal

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Blue Label’s “massive opportunity” in handset financing