Mr Price’s Cellphone Division Thrives with a 37% Increase in Profit

In the first 26 weeks of its financial year, Mr Price, the renowned retail giant, has reported a remarkable performance in its telecoms division, showcasing a profit before finance costs and finance income amounting to R63 million. This figure reflects a significant upswing of 37% from the R46 million recorded during the same period in the previous year.

The robust financial performance can be attributed to the telecoms segment’s impressive retail sales growth, which soared by 7.9%, reaching an impressive R533 million. The positive trajectory is indicative of Mr Price’s effective strategies in navigating the dynamic telecommunications market.

One noteworthy aspect contributing to the telecoms division’s success is the additional income generated. Mr Price reported a substantial R87 million in other telecoms income during this period. Of this amount, R79 million was attributed to revenue from contracts with customers, culminating in an impressive total telecoms revenue of R620 million. This multifaceted revenue stream underscores the diversified approach employed by Mr Price within the telecoms sector.

Notably, Mr Price’s foray into the mobile virtual network operator (MVNO) arena has proven to be a strategic move. Operating on Cell C’s platform, the MVNO, known as Mr Price Mobile, has become an integral component of the telecoms division’s success story.

According to Mr Price’s official results statement, the standalone Mr Price Cellular stores have consistently outperformed expectations, showcasing the company’s adeptness in meeting consumer demands and preferences within the competitive telecom landscape.

Moreover, Mr Price has asserted its dominance in the market, gaining an impressive 120 basis points of market share in cellular handsets and accessories, according to data from GfK. This achievement not only underscores Mr Price’s commitment to excellence but also solidifies its position as a key player in the telecommunications sector.

As the telecoms division continues to exhibit strong financial performance and market share growth, Mr Price remains optimistic about its future endeavors in this dynamic and ever-evolving industry. The company’s ability to adapt to market trends, coupled with its strategic initiatives, positions it as a formidable force in the telecommunications sector, ready to seize emerging opportunities and navigate challenges effectively.