Blue Label Telecoms (BLU) – Building an ecosystem
Summary
We initiate coverage on Blue Label Telecoms with a BUY recommendation
The SA Distribution segment remains the core of the business. We believe that regulatory developments in India and a resurgence in cash usage have negatively impacted on the growth potential of the Oxigen business. Despite the significant potential of Mexico’s airtime market, stubbornly high market concentration threatens to persist and smother growth. The Mexican business is subscale, in our view.
On its own, the growth prospects for Cell C seem weak. However together with 3G Mobile, Reware, BLU’s existing ecosys...