South African IT firm Dimension Data doubled first-half adjusted earnings per share as more companies adopted internet-based communications, but it forecast slower revenue growth in the second half.
London-listed Didata said on Wednesday earnings per share before one-off items rose to 1,8 US cents in the six months to end the end of March from 0,9 US cents in the year-ago period.
EPS rose to 2,1 US cents from 1,9 cents, and revenue jumped 22,2% to $1,8-billion. The company’s operating margin before one-off items rose to 3,1% from 2,5% a year ago.
Didata said last week that analysts had forecast a 10% increase in revenues to $1,6-billion.
Didata said it was benefiting from brisk business as companies switched to an internet protocol-based communication infrastructure, which carries voice, data and video.
”Clients are standardising on an internet protocol-based infrastructure to streamline their overall IT infrastructure,” chief executive Brett Dawson said in a statement.
The company said a plan to turn around its underperforming European business was yielding fruit, with revenues up 21,8% in the region and a return to profit in France.
But Didata said stronger-than-expected revenue growth in Africa and Europe in the first half meant growth would probably slow in the second half of the year.
Didata posted its first annual profit in five years in 2005 after cutting its workforce by 25%, revamping its core networking business and expanding into voice over internet protocol, security, data storage and consulting services. – Reuters