Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Beijing’s chip champions blacklisted by Taiwan

      16 June 2025

      The little-known company disrupting Eskom’s monopoly

      16 June 2025

      Public money, private plans: MPs demand Post Office transparency

      13 June 2025

      Coal to cash: South Africa gets major boost for energy shift

      13 June 2025

      China is behind in AI chips – but for how much longer?

      13 June 2025
    • World

      Yahoo tries to make its mail service relevant again

      13 June 2025

      Qualcomm shows off new chip for AI smart glasses

      11 June 2025

      Trump tariffs to dim 2025 smartphone shipments

      4 June 2025

      Shrimp Jesus and the AI ad invasion

      4 June 2025

      Apple slams EU rules as ‘flawed and costly’ in major legal pushback

      2 June 2025
    • In-depth

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025

      South Africa unveils big state digital reform programme

      12 May 2025

      Is this the end of Google Search as we know it?

      12 May 2025
    • TCS

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025

      TCS | Sentiv, and the story behind the buyout of Altron Nexus

      3 June 2025

      TCS | Signal restored: Unpacking the Blue Label and Cell C turnaround

      28 May 2025
    • Opinion

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025

      Digital giants boost South African news media – and get blamed for it

      29 May 2025

      Solar panic? The truth about SSEG, fines and municipal rules

      14 April 2025

      Data protection must be crypto industry’s top priority

      9 April 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Investment » Datatec sees robust growth, declares special dividend

    Datatec sees robust growth, declares special dividend

    By Duncan McLeod28 October 2021
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Datatec CEO Jens Montanana

    JSE-listed global technology distribution and services group Datatec is firing on all cylinders, if it’s interim results for the six months to 31 August are anything to go by.

    The group reported a “solid” first half that would have “been even better” if not for worldwide semiconductor shortages, CEO Jens Montanana said on a webcast with investors on Thursday. Backlogs of orders at Westcon International, its distribution arm, have more than doubled, he said.

    For the first half of the 2022 financial year, Datatec reported revenue growth of 15% to US$2.3-billion, while earnings before interest, tax, depreciation and amortisation — a measure of operating performance — jumped by 24% to $75-million. Underlying earnings per share more than doubled. The group declared an interim dividend of R5.12/share and said it will also pay a special dividend of $70-million (just over R1-billion) following the successful repayment of loans previously made by Datatec to Westcon.

    Datatec’s first half results were supported by excellent operational execution…

    Datatec said there was “strong operational execution in all divisions”, with elevated demand for networking, cybersecurity and cloud infrastructure.

    “Datatec’s first half results were supported by excellent operational execution, with all divisions delivering strong top- and bottom-line growth as the positive impact of increased digitisation on recurring software and services continues,” Montanana said in a statement with the interim results.

    “We are seeing pent-up demand in many forms across the world and expect a strong performance throughout the second half of the year. However, the semiconductor shortage is expected to continue to result in significant backlogs across the group well into 2022,” he said.

    Potential options

    He added that Datatec is “progressing with several options and initiatives” to unlock and maximise shareholder value. In September, Montanana said in an interview with TechCentral that the group was considering several options, including subsidiary listing and possible asset sales to address the situation where Datatec’s valuation was languishing far below its international peers.

    “Datatec’s strategy is to improve shareholder returns over the medium term through a combination of corporate and business development actions aimed at enhancing the competitiveness and profitability of its subsidiaries and operating divisions,” the group said on Tbursday.

    “As part of the strategic review, the board is currently considering a number of potential options including, but not limited to, private equity participation, joint ventures, international listings, divisional asset unbundling and other value-creating structures.”  — © 2021 NewsCentral Media

    Now read: Jens Montanana’s big plan to ‘dezombify’ Datatec



    Datatec Jens Montanana Westcon
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleHuawei spinoff Honor is rapidly gaining market share
    Next Article EOH reduces full-year losses, outlines debt restructuring plan

    Related Posts

    Shift in revenue mix powers Datatec profits higher

    27 May 2025

    The CEOs who run South Africa’s listed tech companies

    25 May 2025

    Big changes sweeping through IT distribution: Westcon CEO

    14 May 2025
    Company News

    Huawei Watch Fit 4 Series: smarter sensors, sharper design, stronger performance

    13 June 2025

    Change Logic and BankservAfrica set new benchmark with PayShap roll-out

    13 June 2025

    SAPHILA 2025 – transcending with purpose, connection and AI-powered vision

    13 June 2025
    Opinion

    Beyond the box: why IT distribution depends on real partnerships

    2 June 2025

    South Africa’s next crisis? Being offline in an AI-driven world

    2 June 2025

    Digital giants boost South African news media – and get blamed for it

    29 May 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.