Mteto Nyati
Mteto Nyati

Altron interim earnings tick up 4% in 'challenging' environment

By ANA Reporter Time of article published Oct 24, 2019

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JOHANNESBURG - Telecommunications and information technology company Altron on Thursday reported a four percent increase in headline earnings per share in the half year to August 31, a period it said was not without challenges.

Group revenue from continuing operations rose eight percent to R8.5 billion, while earnings before interest, taxes, depreciation, and amortization (EBITDA) gained 19 percent to R803 million. 

Altron declared an interim dividend of 29 cents per share.

The company, which offers ICT services in cybersecurity, software security solutions, business process outsourcing, and skills development, among others, said it remained on track to achieve its five-year goal of doubling EBITDA by 2021.

“We accelerated the execution of our One Altron Strategy, which focuses on doing more with existing customers, while continuing to win new customers," group chief executive Mteto Nyati said.

"This has delivered organic growth for our business.”

He said the first half of the financial year came with its challenges. Apart from the sluggish South African economic growth, subsidiary Altron Nexus was negatively impacted by the city of Tshwane broadband network judgement handed down against Thobela Telecoms as well as the suspension of key executives.

Earlier this year, the high court in Pretoria set aside a contract with the Tshwane municipality for a broadband network project which had been awarded to Thobela, a special purpose vehicle in which Altron Nexus was a minority shareholder.

"Our focus will remain on organic growth, supplemented by acquiring select small-to medium-sized businesses in our focus areas, which will lead to enhanced capabilities and expanded geographic footprint,” Nyati said on Thursday.

- African News Agency (ANA) 

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