DataPro’s plan comes together
Operating profit rose 154% to R16.3 million and net profit for the period 150% to R11.6 million. The Group attributes its performance to a combination of strong organic growth in its voice and data businesses as well as to the success of its acquisition strategy.
“We’ve successfully combined significant new investments with excellent results from our existing businesses,” says CEO Douglas Reed.
“All our mature business units are showing strong organic growth, with the monthly contracted annuity base increasing by 23% in the six months to end February, even without the impact of the Orion purchase.” Reed says the integration of the Orion business is on track and proving “relatively painless”.
The group expects revenue growth in the next six months to be even higher, as there is traditionally a seasonal dip over the December holiday period.
“The Group’s transformation into a major alternative telecommunications supplier for South Africa is well on track,” says Executive Chairman Tony van Marken. “The acquisition of Orion is proving to be a strategic coup and we’re well placed to maximise the opportunities that are about to open up as our interconnects with the incumbent operators go live.”
DataPro already interconnects with Telkom and Vodacom, with MTN and Cell C interconnects due to be implemented shortly. Van Marken says the Group will continue to expand, upgrade and integrate its network infrastructure into a single platform to support its core data business as well as its growing VoIP platform.
“The interconnects we’ll shortly have in place will allow us to play in the lucrative voice sector for the first time,” says Reed. “The playing fields are still far from even, but at least we’re now allowed in the game, and deregulation is adding to the industry’s growth momentum.”
Reed says the company’s incubator businesses are progressing well and the Group’s investment in VoxTelecom will pay off as deregulation becomes reality “We have good, established businesses, a fantastic customer base and R217 million in the bank. These results are just the beginning.”
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