Alviva Holdings said on Wednesday that it’s full-year headline earnings will fall by more than 50%, though it said its prospects have improved since a disappointing set of interim results earlier this year.
Technology group Alviva Holdings reported a slump in earnings for the six months ended 31 December 2019 due to woes in its ICT distribution segment, a change in accounting rules and foreign exchange losses.
While big technology shares in the US have continued to hit new highs in 2020 – among them, Microsoft, Apple, Amazon, Google and Nvidia – JSE-listed IT companies have had a torrid start to the new decade.
It’s been a grim start to 2020 for some South African-listed technology companies, which have seen their shares battered on weak earnings updates and negative investor sentiment.
Shares in technology distribution group Alviva Holdings tumbled more than 25% in intraday trading in Johannesburg on Friday after it shocked investors with a profit warning.
In an era of rapid change and evolution, it is difficult to determine which technologies are genuine disruptors. Alviva, although an IT company, believes it is not, in fact, the IT industry that will produce the next big game changer. By Pierre Spies.