Affinity looks to further free-Internet offerings

Johannesburg, 20 Jun 2001

Affinity Internet Holdings, the UK-based Internet company, says it is talking to more than 15 South African companies with a view to introducing branded free-Internet access similar to that offered by Absa and Liberty Life.

However, group CEO Wayne Lochner says reports that the group is in negotiations with Pick 'n Pay are untrue.

Lochner says the group is very pleased with the uptake of the Absa free-Internet offer, although it had to temporarily absorb some of the extra overheads caused by the rapid uptake of the offer. "We did not expect to have to get our CRM and billing engine down here this soon because we didn`t expect the uptake we got."

Lochner says the group`s target is to launch six to eight branded-access projects in SA over the next six months. He says the company is already talking to players from across the spectrum, including retail, sport and fashion. "We are trying to get to the 'passion points`."

According to him, the group will focus on consolidating the Absa and Liberty Life offerings, including their eCRM offering, within the country.

Lochner confirms that Absa will take up some of Affinity`s other services, very possibly the content management system the group has developed. "We provide free branded access to companies so long as they take our other services."

Looking ahead, Lochner says the group may introduce many of its other offerings to SA, including its billing systems and shopping engines. These include Mister Mail, the group`s pay-for-mail system, and its virtual shopping system that replicates existing shopping malls. The group has already launched its first virtual mall along these lines in the UK. On this strategy, Lochner notes: "We support brick-and-mortar brands with an online strategy."

On mobile investments, Lochner comments: "If we are going to invest in infrastructure in SA, we would invest in an advanced SMS infrastructure rather than a WAP system."

Financially, Lochner says the group is "meeting its targets". The UK portion of the group is profitable for the first time in the first quarter, posting a gross profit of lb70 000.

Gross loss for the company was lb1.4 million and group revenue increased 170% over Q1 2000 to lb5.6 million in Q1 2001. Affinity reported a total of three million group users.