Telecoms liberalisation puts DataPro on growth path
DataPro said it expected two years of strong demand for its high-speed ADSL internet connectivity, building on growth of 12% a month.
Reed predicted a boom in demand for voice over internet protocol services, which carry voice calls over cheaper data networks. The opportunities should ramp up the results it posted on Tuesday for the six months to February 28, he said.
DataPro had capitalised on market liberalisation to offer services as a “preferred alternative” to Telkom.
Its main business, internet access for corporate clients, had seen demand for bandwidth double in the past 12 months.
A revenue stream had opened up with the acquisition of consumer-oriented service provider @lantic, which sells services via 150 regional franchisees and serves 600 small firms.
DataPro shares took a temporary knock from 57c to 55c yesterday after results showed a dip in its gross margins from 45,8%-39,8%, as it invested in new services without any return.
Revenue of R78m was up 57% from R50m. A large increase in customers and better cost controls pushed net profit from R2,6m to R4,6m.
Headline earnings a share rose from 1,1c to 1,2c. The results had met expectations.
DataPro confirmed its R70m acquisition of Definity, a supplier of least-cost routing, which cuts corporate phone bills by diverting calls off the Telkom line onto the cheapest cellular network.
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