Datatec reports 83% hike in annual ebitda
DURBAN - Datatec, the international information and communications technology (ICT) group, on Wednesday reported a strong set of results for the year to end February, supported by good operational execution in all divisions.
The group reported an 83 percent increase in earnings before interest, tax, depreciation and amortisation (Ebitda) to $158.7 million (R2.75 billion), up from $86.8m compared to last year.
However, the group said excluding the adoption of IFRS 16, Ebitda would have been $123.5m, representing a 42 percent increase compared to a year earlier.
Its underlying earnings per share (Ueps) increased by 50 percent to 9.9 US cents a share compared to 6.6 US cents and revenue was flat at $4.30bn in reported US dollar terms. In constant currency terms, revenues increased by 3.6 percent, reflecting the impact of foreign currency translation effects on the results.
Chief executive Jens Montanana said the group delivered strong results in the past year, supported by good operational execution in all divisions in the face of growing global economic uncertainty.
"Westcon International returned to profitability and Logicalis Latin America produced an exceptional performance, as did Analysys Mason, our Management Consulting division, which continued to benefit from demand for 5G expertise,” Montanana said.
Datatec has three divisions: Logicalis, Westcon International and Analysys Mason.
Logicalis, which accounts for 40 percent of group revenue, reported that the segment’s revenue decreased by 2.34 percent to $1.7bn, but was up by 4.28 percent in constant currency.
However, the division’s Ebitda was up by 32.66 percent to $123.9m.
Westcon International, which accounts for 59 percent of group revenue, reported a flat revenue of $2.54bn while Ebitda increased to $40m, up from $5.6m compared to last year, benefiting by $13m from the adoption of IFRS 16.
The Corporate, Management Consulting and Financial Services segment, which accounts for 1 percent of group revenue, reported a revenue of $58.7m, up from $45.7m while Ebitda increased to $9.4m, up from S$2.8m compared to last year.
Datatec returned $60m to shareholders through a special dividend and share repurchases during the period.
Datatec share price was down by 1.18 percent on Wednesday morning to R20.86 a share.