Publications
Partners
Johannesburg - South African headquartered IT firm, Datatec, has experienced headwinds according to its latest interim results published on Wednesday on the Johannesburg Stock Exchange news service Sens.
Datatec is an international ICT solutions and services group operating in more than 70 countries across North America, Latin America, Europe, Africa, Middle East and Asia-Pacific.
And unaudited results from the group indicate that its group revenue fell from $3.29bn for the six months ended August 31 2015 (H1 FY15) to $3.04bn for the same comparative period ended August 31 2016.
READ: Datatec dominates thin trade on JSE
The company's earnings before interest, taxation, depreciation and ammortisation (Ebitda) also sank from $80.6m in the six months ended August 31 2015 to $68.9m for the same period this year.
Subsequently, Datatec's earnings per share fell from 16.6 US cents for the first half of its 2016 financial year to 12.5 US cents for the six months ended in its 2017 financial year.
Jens Montanana, Chief Executive of Datatec, explained the challenges facing the company.
"The group's results for the first half of FY17 have been affected by challenging global conditions, with a strong US Dollar continuing to impact translated earnings," said Montanana.
"There are now, however, signs of improved confidence in emerging markets and we expect a continued slow recovery in these markets, with more stable currencies.
"Our multi-year investment in Westcon's transformation is entering its final stages with the ERP roll-out and BPO initiative expected to end by June 2017.
"Based on our strengthened position in key markets, we anticipate a sequentially and comparatively better second half of FY17," Montanana said.
The group was formed in 1986 and now boasts more than 8 500 employees in over 70 countries, with the bulk of its operation in Europe.
Read Fin24's top stories trending on Twitter:
