Datatec 6% up after rise in earnings
DURBAN - Datatec accelerated more than 6 percent on the JSE yesterday after the information and communications technology group said its earnings for the four months to the end of June improved compared with the same period last year.
The group said current revenues eased slightly from the same period last year, but this was offset by a decline in operational costs.
“This has resulted in a meaningful operating leverage and improved earnings before interest, tax, depreciation and amortisation (Ebitda),” the group said.
Datatec reported an 83 percent increase in Ebitda to $158.7 million (R2.61 billion) for the year to the end of February, boosted by the performance from all its divisions.
The 12-month period was not affected by the Covid-19 outbreak, but the four-month business update included the disruptions to operations caused by the pandemic.
It said cash collections from customers during the first few months of the 2021 financial year remained in line with historic norms despite the disruptions caused by the pandemic.
The group said revenues from its Westcon International division for the four-month period were slightly higher compared to last year, with an improvement in Ebitda.
“Demand was strong for networked cloud computing, remote access solutions for home working and virtual office environments, unified communications and enhanced network security,” the group said.
Logicalis’s revenues were modestly lower compared with last year, but its services revenues were strong.
The division reported an improvement in its Ebitda during the four months, mainly driven by Europe and the US, while Latin America and Asia Pacific continued to be impacted by currency translation.