Blue Label’s Mark Levy on why bad share price doesn’t mean a bad business

Technology company Blue Label Telecoms faced a challenging year with almost 30% of its market value being wiped out in the first quarter. However, Co-Founder and CEO Mark Levy explained that a bad share price does not necessarily equate to a bad business. Levy shed light on the history of the company's name, Blue Label, which was chosen as an aspirational brand. Despite facing objections during the naming process, a creative settlement was reached with Maury Biscuits. The company adopted the tradition of commemorating deals by writing them on the back of a bottle and having all parties involved sign it, creating a 'wall of fame' of successful ventures and relationships. This tradition has remained a cherished part of Blue Label's culture, symbolizing the good times experienced in the business. Reflecting on the recent market challenges, Levy acknowledged the impact of external factors on Blue Label's share price, emphasizing that the company remains strong at its core. While the acquisition of CELCE brought initial excitement to the market, uncertainties around funding and debt positions led to a decline in investor sentiment. Despite Blue Label's solid performance, the focus has shifted towards CELCE, creating a 'binary' situation for the company. Levy expressed confidence in CELCE's leadership team, highlighting recent appointments that have revitalized the organization. As a significant shareholder in CELCE, Blue Label plays a supportive role at the board level, allowing the management to drive the company's strategic direction. When questioned about the potential plateauing of mobile penetration in Africa, Levy clarified Blue Label's diversified business model. While telecoms play a crucial role, the company operates as a sophisticated distribution and financial services firm, offering a wide range of products beyond telecommunications. Leveraging its well-established distribution network, Blue Label continues to innovate in areas such as data services, electricity, ticketing, and financial products. Levy emphasized the limitless possibilities for digitization and product expansion, highlighting the company's commitment to exploring new opportunities beyond traditional telecom offerings. Despite market challenges, Blue Label Telecoms remains resilient and focused on adapting to changing dynamics while embracing a diverse portfolio of products and services.