Here’s How Much Money Mr Price Is Making From Telecoms

South African retailer Mr Price, which uses cellular handsets and accessories to drive footfall traffic into its stores and online platforms, reported strong growth from its telecoms segment in the year to the end-April 2022.

The retailer said the Telecoms segment exceeded one billion Rand in revenue for the first time, increasing 34.4% to R1.2 billion.

Mr Price Cellular, launched in 2017, has reported exponential growth since inception and is now available in 374 stores with promising growth opportunities, most notably the rollout of standalone stores.

Cellular handsets and accessories gained 130bps of market share, according to Growth for Knowledge (190bps including Powercell in Power Fashion), a significant gain considering the disruption caused by global supply chain challenges and civil unrest during the period, said Mr Price.

Mr Price has run its mobile virtual network operator on struggling cellphone operator Cell C’s network since 2014.

Mr Price also reported a 20.1% rise in headline earnings per share, which is South Africa’s main profit gauge, to 1 282.1 cents.

The group grew its annual market share by 140 basis points according to the Retailers’ Liaison Committee (RLC) and its operating profit exceeded R4 billion for the frst time, with operating margin increasing 60 basis points to 17.7%.

Group results include the recent acquisitions of Power Fashion, effective 1 April 2021, and Yuppiechef effective 1 August 2021 – both acquisitions were earnings accretive during the Period.

“I am extremely satisfied with the way in which the team have responded to the multiple challenges we have faced this year. It is important to remember that we were one of the first businesses in South Africa to get back to pre-COVID-19 earnings levels,” Group CEO, Mark Blair, said.

“Our base is much higher than most of the market as we reported earnings growth in FY2021 when most companies’ earnings were declining. We have continued to grow market share and have further entrenched ‘Your Value Champion’ promise to our customers.”