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    Home » News » Dimension Data soars despite weak economy

    Dimension Data soars despite weak economy

    By Editor12 December 2011
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    Brett Dawson

    SA-headquartered IT services giant Dimension Data grew revenues in constant currency by 14,8% to US$5,8bn in the year to 30 September 2011, with operating profit climbing by 10,8% on the back of the strong improvement in sales.

    In reported currency, Didata’s revenue line grew by 22,1% and operating profit by 21,3%.

    “Against the backdrop of a volatile global economy and tough trading conditions, this year’s double-digit growth is an outstanding performance,” says group CEO Brett Dawson.

    Didata, which had been the largest listed IT company on the JSE for many years, was acquired last year by Japan’s Nippon Telegraph and Telephone in a R24,4bn all-cash deal. The company was subsequently delisted in both London and Johannesburg but continues to publish the highlights of its financial performance.

    The Systems Integration business, which now contributes 78% of revenue, continued to be the “main thrust behind the group’s success”, turning in sales of $4,5bn and an operating profit of $202,7m, up by 7% on a year ago.

    “By region, Europe, Asia and Australia delivered good growth, while the Middle East and Africa region was steady,” Didata says. “In the Americas, Canada, Mexico and Chile recorded excellent growth, with operating profit in the US flat year on year.”

    Services revenue in the Systems Integration business was up by 17,7%.

    During the year, Internet Solutions grew revenue by 6,9%, Plessey by 22,9% and Express Data by 24,3% (15,5% of which was organic growth). Internet Solutions’ operating profit rose by 9,1% and reported an operating margin of 12,6%.

    In the next 12 months, Didata says one of its primary focus areas will be expanding its cloud computing services portfolio and its global cloud infrastructure and platform.  — Staff reporter, TechCentral

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