South Africa’s retailer Mr Price’s Financial Services and Cellular division reported a 23.5% rise in revenue in the 26 weeks ended 30 September 2018.
The Financial Services and Cellular segment manage the group’s trade receivables and sells financial services and cellular products.
The cellular division, MRP Mobile runs on a Cell C’s network since 2014.
Its services as one of South Africa’s mobile virtual network operators are becoming an alternative to your traditional mobile phone firms, such as Vodacom, MTN, Telkom and Cell C, etc. They are also an alternative to traditional banks, such as FNB, ABSA, Standard Bank, Nedbank and Capitec.
Mr Price also offers financial services through MRP Money.
Mr Price Group on Thursday delivered double-digit earnings and dividend growths in tough economic and retail environments.
Headline earnings per share (HEPS) and dividends per share (DPS) increased by 11.6% to 494.3 cents and 311.4 cents respectively. HEPS is South Africa’s main profit gauge.
Its retail sales in both the apparel and homeware segments grew ahead of the market for the period, as reported by Stats SA.
The group’s total revenue grew 7.8% to R10.5 billion supported by retail sales growth of 6.6% (comparable stores 3.9%) to R9.7 billion.
The company said other income, mainly from financial services and cellular, grew 24.7% to R801 million.
The Financial Services & cellular division reported growth of 23.5% lifting revenue to R673 million. Interest and fees increased by 7.5% to R246 million, insurance revenue grew 7.6% to R131 million.
The cellular division, MRP Mobile, revenue accelerated to R296 million, reflecting an increase of 52.3%.
The company said its cellular products are now sold through 249 locations across the group and its centralised call centre.
Meanwhile, the Apparel division reported a 11.2% rise in operating profit increased 11.2%, particularly in MRP Apparel and Miladys. Sales in MRP Apparel increased 5.9% to R5.9 billion. Online sales grew at 31.6%, supporting the omnichannel strategy.
MRP Sport reported improved performance with sales growth of 7.3%, with online sales growing at 40.4%.
The Home division delivered a 13.8% in operating. Sales in MRP Home were up 9.2% with improved sales in bedroom and furniture departments and growth in the online channel of 29%.