South African information and communications technology (ICT) company Allied Technologies (Altech) posted a 15,3% rise in headline earnings per share to 181 cents for the six-month period ended August this year, from 157 cents reported a year earlier.
Revenue jumped by 11% to R2,933-billion, while operating income rose to R250-million from the previous R248-million.
No dividend was declared.
Earlier this month, the JSE-listed ICT group sold the 50% it held in Botswana-based mobile network Econet Wireless Global (AEW) back to Strive Masiyiwa’s Econet Wireless Group (EWG) for $87,5-million. The sale came about as result of a failed Altech-EWG 10-month-long joint business venture.
The sale of AEW resulted in a $17,5-million or R154-million profit.
Cash generated by the Johannesburg-headquartered company gained R27-million to reach R293-million from last year’s R266-million.
Altech’s asset base spans telecommunications, multimedia and electronics as well as IT subsidiaries NamITech, Isis and Cardtronic.
Altech, which is 53,4%-held by listed Allied Electronics, also owns 3CTV, Global Decorder Logistics, Mobile Xpress and Mobile Direct, Netstar, and UEC Technologies Autopage Cellular — whose subscriber base stands at 667 000. Autopage, which favours the advent of mobile virtual network operator (MVNO) in South Africa, competes with Reunert’s (RLO) Nashua Mobile.
The MVNO status, if implemented by the regulator, could see the company expanding its source of income.
In terms of divisions, telecommunications generated R2,224-billion or 76% of the company’s total revenue, while 25% was turned over by the other two segments, with intergroup sales resulting in a 1% loss.
“The opening of the [telecommunications] market for voice-over-internet protocols, followed by increasing pressures from government to reduce tariff pricing through further competition, has created opportunities for Autopage Cellular to leverage its significant subscriber base, expertise and experience into a broader communications market,” the company said.
“Autopage Cellular is exceptionally confident of its long-term future with all of the cellular network operators in South Africa, and signature of agreements with both Vodacom and MTN is imminent. This will complement the existing agreement with Cell C.”
In terms of Netstar, the company said the subsidiary is expected to expand. This is in part due to the growth the number of motor vehicles in Malaysia, as well as the imminent roll-out in Nigeria, other parts of Africa and targeted international markets.
UEC continued its turnaround to return to sustainable profitability.
According to Altech, Isis’s relationships with African landline and mobile operators ensured strong and dependable cash flows and profits.
“With an increased order book, the growing annuity income expected to be derived from the Autopage and Netstar operations, as well as opportunities in an increasingly liberalised and deregulated telecoms market, complemented by acquisitions, the directors remain confident of continued real growth in the second half of the financial year,” the company said.
At 4.44pm on Wednesday, Altech was 1,16% or 50 cents weaker, trading at R42,50 per share after closing at R43 rand per share on the JSE on Tuesday. — I-Net Bridge