New ISP launching in South Africa


Balwin Properties says that it is in the process of launching its own internet service provider (ISP) in South Africa, which will add another annuity revenue stream to its lifestyle estate business.

The ISP is one of several expanded business offerings established within the annuity group in the 2024 full year, but not yet launched.

Other services in the annuity business include Balwin Maintenance (maintenance advisory services to sectional title schemes), Balwin Signage (digital and static advertising) and Balwin Approved (trade-in of residential property).

The group anticipates that in FY 2025 (ending February 2025) its downstream internet service provider for Balwin Fibre will be completed in Balwin Connect.

Balwin said that its annuity revenue strategy not only aims to diversify the group’s sources of income but also makes living in a Balwin development more cost-effective for homeowners.

The largest source of annuity revenue is currently from the installation and supply of fibre networks through Balwin Fibre.

Balwin Fibre has a total client base of 9,324 subscribers representing 72% of total homes installed. A further 1,649 homes were installed in the FY24 period with a total of 12,926 homes installed to date.

Balwin Fibre is currently a pure open access fibre network operator and does not sell any internet services itself; however, this will change with Balwin Connect once it fully launches.

It manages fibre networks in 27 Balwin estates across the country, managing ISPs such as Afrihost, Cool Ideas, Home Connect, Supersonic, Vox, Webafrica and Mweb.

“Collectively, the annuity businesses increased revenue by 70% to R132.5 million, more than doubling the contribution to group revenue to 5.6%.

“We believe we can sustain this growth momentum, given management’s proven ability to identify, develop, fund and grow a portfolio of innovative, value-adding businesses.”

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