Latest news with #Datatec
Yahoo
28-05-2025
- Business
- Yahoo
Datatec Ltd (DTTLF) Full Year 2025 Earnings Call Highlights: Strong Growth in Profitability and ...
Gross Invoiced Income: Increased by $114 million to $7.74 billion. Gross Profit: Rose by $48 million, a 5.6% increase. Adjusted EBITDA: Increased by $54 million, a rise of 28%. Underlying Earnings Per Share: Increased by approximately 80%. Dividend Payout Ratio: Increased from 3:1 to 2:1, a 114% increase in total dividend paid. Net Debt: Reduced by $59 million, ending at $30 million. Recurring Gross Invoiced Income: Rose by 14% to approximately $3.5 billion. Westcon EBITDA: Increased by 25%. Logicalis Gross Margin: Increased to 30%. Logicalis Adjusted EBITDA Margin: Expanded to 8%. Logicalis LatAm Adjusted EBITDA: Grew by over 50%. Logicalis LatAm EBITDA: Increased by approximately 70%. Warning! GuruFocus has detected 12 Warning Signs with DTTLF. High Yield Dividend Stocks in Gurus' Portfolio This Powerful Chart Made Peter Lynch 29% A Year For 13 Years How to calculate the intrinsic value of a stock? Release Date: May 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Datatec Ltd (DTTLF) reported a significant increase in gross invoiced income, rising by $114 million to $7.74 billion. The company achieved a substantial rise in adjusted EBITDA by 28%, reflecting improved operational efficiency. Underlying earnings per share saw an impressive increase of approximately 80% compared to the previous year. The company decided to increase its dividend payout ratio from 3:1 to 2:1, resulting in a 114% increase in total dividends paid. Strong growth in cybersecurity and networking for enterprises, driven by AI adoption, contributed to improved performance across divisions. Net finance costs increased due to higher interest rates and greater utilization of facilities. The change in accounting policy for revenue recognition, particularly in the Westcon business, led to reported revenue reductions. Hardware sales continue to decline as the company pivots towards more software and services. The Middle East and Africa regions did not experience top-line growth, unlike other regions. The restructuring in Europe and the rising valuation of the business increased the IFRS 2 charge for the employee share incentive program. Q: How is the recent rally in the share price impacting management thinking about share buybacks moving forward? A: Jens Montanana, Chief Executive Officer, stated that Datatec Ltd is continuing with its pre-defined share repurchase program but did not provide specific details or parameters. Q: Net debt reduced significantly by the end of FY25. How sustainable is this low level of debt? A: Ivan Dittrich, Chief Financial Officer, explained that while net debt reduced significantly, average utilization of facilities was higher throughout the year. With a shift towards more software and services, working capital utilization is expected to decrease, leading to a general trend of reducing overall debt. Q: Could you talk through the trend for gross invoice income through the year by division? How did you exit FY25? A: Jens Montanana noted that gross invoice income, representing top-line sales, is expected to grow at low-single digits across all divisions. However, gross profit is anticipated to grow faster due to the ongoing mix change and increase in services and software, providing leverage further down the income statement. Q: What are the main drivers behind the new definition for IFRS revenue? A: Jens Montanana highlighted that the pivot to more software, services, and recurring revenue is the main driver behind the new IFRS revenue definition, aligning with industry trends and peer reporting. Q: How is AI adoption impacting Datatec's business strategy? A: Jens Montanana emphasized that AI adoption is driving demand for enterprise and data center AI infrastructure, leading to a monumental retooling of the IT landscape. This shift is expected to boost IT infrastructure and cybersecurity, positioning Datatec well in the market. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
IOL News
27-05-2025
- Business
- IOL News
Datatec increases final dividend after strong annual financial performance
Datatec's chief executive Jens Montanana says increasing IT complexity driven by AI and the big rise in interconnected digital communities is driving infrastructure demand in areas like networking and cyber security, where the group has "deep domain knowledge and many years of experience". Image: supplied Datatec, the international information and communications technology (ICT) group, lifted its final dividend to 200 cents for the year ended February 28 versus 130 cents at the same time last year after solid profit improvements in its biggest subsidiaries. The dividend policy was being changed to a more shareholder-accommodative two times dividend cover ratio, versus three times cover previously, due to a management incentive plan in some of the divisions that has resulted in upstreaming of cash to the parent company in the form of returns on fixed return equity instruments, resulting in more cash at the parent company. "I am pleased to report a very strong operating and financial performance across all regions and metrics for the group," chief executive Jens Montanana said in the results. He said the improving profitability and cash generation of the group's divisions enabled them to increase their dividend payout policy to 50% of underlying earnings per share. Earnings before interest, tax, depreciation, and amortisation (Ebitda) increased 24.6% to $221.3 million (R4 billion) from $177.6m. Revenue fell 8.8% to $3.99bn. Headline earnings per share increased 79.6% to 25.5 US cents, from 14.2 US cents. Net debt fell to $62.1m from $123.1m previously. Montanana said increasing IT complexity driven by AI and the big rise in interconnected digital communities was driving infrastructure demand in areas like networking and cyber security, where the group has "deep domain knowledge and many years of experience." Revenue declined mainly due to a mix change and more software and services being accounted for in net revenue. Gross profit increased 5.6% to $910.3m, largely due to changes in the revenue mix, contributing to a big gross profit increase in Westcon International and Logicalis International. He said their strategy was to improve shareholder returns over the medium term through a combination of corporate and business development actions, to enhance the competitiveness and profitability of the subsidiaries and operating divisions. "The group continues to see good demand for its technology solutions and services worldwide," said Montanana. He said a strategic review continued to address the gap between Datatec's valuation and the inherent value of its subsidiaries, while also ensuring the group was positioned to take advantage of the positive market dynamics for its technology solutions and services. "We expect that the trend toward higher software sales and annuity services will continue, improving the group's margins and cash flow profile. There is continued strong demand for the group's products and solutions, which positions the group well in an increasingly complex environment," the board said in the results. "The board expects that all divisions will continue to improve their financial performance in the year ahead," it said in a statement.
IOL News
30-04-2025
- Business
- IOL News
Datatec joins OTCQX trading platform to enhance US investor access
DATATEC'S share opened at $2.25 on the US's OTCQX Market on Wednesday, the first day of trading on that market. The market is a platform for companies listed on a qualified international exchange to provide transparent trading to US investors using a US dollar quoted share price. Image: supplied Datatec, the international information and communications technology (ICT) company, was admitted to the OTCQX trading platform in the US on Wednesday to broaden international investor access. The share opened at $2.25 on the OTCQX Market on Wednesday. The over-the-counter market in New York is a platform for companies listed on a qualified international exchange to provide transparent trading to US investors using a US Dollar quoted share price. On the JSE, Datatec's share price was up by 1.68% to R58.27 on Wednesday afternoon, a price that was 59% higher than a year previously. It enables companies to disseminate their home market reporting to make their information available in the US. To qualify for OTCQX, companies must meet high financial and reporting standards, follow best practice corporate governance, and demonstrate compliance with applicable securities laws. In March, Datatec said group gross profit for its financial year to February 28, 2025, was expected to be about $910 million, 6% higher than at the same time last year. The group built on a strong operational performance reported for the first half of the financial year and benefited from demand for its technology solutions and services, especially in the areas of cyber security and hybrid cloud infrastructure.
Associated Press
30-04-2025
- Business
- Associated Press
OTC Markets Group Welcomes Datatec Ltd to OTCQX
NEW YORK, April 30, 2025 (GLOBE NEWSWIRE) -- OTC Markets Group Inc. (OTCQX: OTCM), operator of regulated markets for trading 12,000 U.S. and international securities, today announced Datatec Ltd (JSE: DTC; OTCQX: DTTLF, DTTLY), an international ICT solutions and services group, has qualified to trade on the OTCQX® Best Market. Datatec Ltd begins trading today on OTCQX under the symbols 'DTTLF and DTTLY.' U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the company on Admission to the OTCQX Market is an important step for companies seeking to provide transparent trading for their U.S. investors. For companies listed on a qualified international exchange, streamlined market standards enable them to utilize their home market reporting to make their information available in the U.S. To qualify for OTCQX, companies must meet high financial standards, follow best practice corporate governance and demonstrate compliance with applicable securities laws. Datatec management commented: 'We are delighted to begin trading on the OTC Market's premier tier, OTCQX. This additional trading venue will allow US investors access to Datatec shares quoted in US dollars and provides a platform to disseminate Datatec's corporate disclosure to US investors with transparency. The company remains committed to maintaining the best possible disclosure for its shareholders.' About Datatec Ltd Datatec is a global digital channels group providing Cybersecurity, Networking and Hybrid Cloud infrastructure solutions and services in more than 50 countries across North America, Latin America, Europe, Africa, Middle East and Asia-Pacific. Through its core divisions, the group offers Value-added Technology Distribution (Westcon International) and Integration and Managed Services (Logicalis International and Logicalis Latin America). Datatec has been listed on the JSE Limited for the past 30 years. About OTC Markets Group Inc. OTC Markets Group Inc. (OTCQX: OTCM) operates regulated markets for trading 12,000 U.S. and international securities. Our data-driven disclosure standards form the foundation of our three public markets: OTCQX® Best Market, OTCQB® Venture Market and Pink® Open Market. Our OTC Link® Alternative Trading Systems (ATSs) provide critical market infrastructure that broker-dealers rely on to facilitate trading. Our innovative model offers companies more efficient access to the U.S. financial markets. OTC Link ATS, OTC Link ECN, OTC Link NQB, and MOON ATSTM are each an SEC regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered broker-dealer, member SIPC. To learn more about how we create better informed and more efficient markets, visit Subscribe to the OTC Markets RSS Feed Media Contact: OTC Markets Group Inc., +1 (212) 896-4428, [email protected]
