JSE-listed Pepkor Holdings has reported gains for its newly-introduced FoneYam smartphone rental product.
The company today published its interim financial results for the six months ended 31 March, reflecting strong half-year results “driven by consistent retail performance, strategic execution in fintech and disciplined cost management”.
Pepkor is a South African-based investment and holding company focused on the discount and value consumer retail and fintech markets. The majority of operations are in SA, extending to other African countries and Brazil.
Its subsidiaries include PEP, Ackermans, Dunns, Shoe City and Tekkie Town.
During the period, Pepkor saw a 12.8% revenue growth to R48.8 billion, and 13.3% operating profit growth to R5.8 billion. It reported a 12.4% growth in headline earnings per share to 84.3 cents.
According to the company, the group’s core traditional retail operations demonstrated strong trading momentum during the period, outperforming the market and expanding market share.
It explains that trading performance was supported by improved product availability, healthy growth in retail credit interoperability and solid growth in cellular connectivity.
Pepkor notes that cellular market share expanded further, with the group now selling eight out of every 10 prepaid handsets in South Africa, according to GfK.
“The newly-developed FoneYam smartphone rental product has been highly-successful, enabling more than 1.5 million customers to acquire smartphones by solving previous affordability barriers. FoneYam also made a meaningful contribution to group profitability during the period,” says the firm.
FoneYam is a smartphone rental service offering an affordable and flexible way to access a new device without the high upfront costs of traditional purchases, says Pepkor.
It allows customers to rent a smartphone by making a small initial payment – typically around 30% of the device’s retail price – and then paying the remaining balance over 12 monthly instalments.
Pepkor adds that its fintech segment continued to deliver healthy growth, underpinned by strategic execution and extensive reach across all channels, which provided customer acquisition capabilities. Fintech revenue increased by 34.5% to R7.9 billion.
Revenue from financial services increased by 67.3% to R3.4 billion, driven by the group's credit interoperability, connectivity and insurance strategies.
Group online sales increased by 18% and by 30% in the clothing and general merchandise segment, driven by strong growth in Ackermans and Speciality.
Pepkor says the +more customer value platform, launched in March 2024, remains in its early stages, presenting a substantial opportunity to deepen customer engagement and convert digital attention into meaningful commercial relationships.
According to the company, +more now includes nearly 10 million members, and engagement indicators continue to improve on a monthly basis.
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