Dimension Data sees revenue growth
IT specialist services provider Dimension Data, which is listed on both the London and Johannesburg stock exchanges, revealed today that revenue has increased year on year in the three months to December.
In an interim management statement for the months between October and December 2009 the company revealed that revenue grew by 6%. In the six months to March of 2009 it also reported revenue of $1.95 billion which indicates an 8.1% improvement in constant currency.
“Gross margins for the quarter improved over the prior period, due mainly to the change in mix in favour of services. This, together with the Group’s continued focus on managing its fixed cost base, resulted in improved operating margin and operating profit relative to the prior period,” revealed the company.
From a geographic perspective, Europe, Australia and Middle East & Africa recorded revenue growth and operating profit expansion. In the Americas, revenues and profits were lower than the prior period, although recent improvements in the monthly order intake in that region “have been encouraging”.
In Asia, profitability improved on the back of services growth and cost management, despite product revenue declines. While the Middle East and Africa performed well in aggregate, some revenues declined as mobile operators on the continent reduced infrastructure spend.
The Group’s order intake for the quarter reflected a year on year decrease at the revenue level but an increase at the gross profit level.
Overall the company indicated that the “continued solid performance of the Group in the third quarter gives us confidence that, given prevailing economic conditions” adding that “Dimension Data will deliver a good financial performance for the second half of the year.”
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