JSE-listed retail group Pepkor Holdings – owner of Pep, Pep Cell, Hi-Fi Corporation and Incredible Connection – continues to dominate cellphone handset sales in South Africa, with 11.5 million devices sold in the year ended 30 September 2024.
“The group sold 11.5 million cellular handsets this year, expanding market share to make the group the seller of 7.5 out of 10 prepaid smartphones in South Africa,” Pepkor said, citing GfK data.
According to the company, smartphones contributed 60% to handset sales in the period. This amounted to 6.9 million devices, suggesting the balance of 4.6 million were mostly feature phones.
Late last year, Pepkor introduced FoneYam (“my phone” in the Nguni languages) – a cellular handset rental product designed to make cellphones more affordable. FoneYam has proved popular, having surpassed the one million customer mark this month. Monthly activations exceeded 120 000 at the end of September, said Pepkor.
At the time of writing, the FoneYam cellular rental book had a gross value of R920-million.
Overall, the group’s fintech segment – including cellular – increased revenue by 27% year on year to R12.7-billion, with gross profit margin expanding by 129 basis points to 48%. Operating profit increased by 55% year on year to R1.4-billion.
Along with the connectivity portfolio, which sells handsets, Pepkor’s fintech arm includes credit, lending, insurance and informal market portfolios.
Flash
In the informal market, the group’s Flash business provides traders with mobile vending options through branded point-of-sale devices. Entrepreneurs using the Flash device can sell airtime, data, electricity and other value-added services, and even distribute the R350 social relief grants to qualifying recipients.
Flash increased revenue by 20% year on year to R8-billion, with operating profit increasing by 38% to R617-million. According to Pepkor, this reflects a seven-year compound annual growth rate of 22%.
Read: Why Capitec launched an MVNO – and what comes next
Total throughput (virtual turnover based on face value of products sold) increased by 30% year on year to R50-billion for the year. The average throughput across the informal market trader base of 165 000 increased by 22% year on year. Sales of 1Voucher, a form of digital currency used to make payments via the Flash ecosystem, reached R15.7 billion for the year, growing by 37%.
Get breaking news from TechCentral on WhatsApp. Sign up here
Don’t miss:
Pepkor sold 5.6 million cellphones in South Africa in just six months