Dimension Data Reports Strong Financial Performance for African activities
London and JSE-listed Dimension Data Holdings announced its results for the six months ended 31 March 2009.
Dimension Data delivered a strong first half FY2009 performance with improved metrics across the majority of the business. The performance is particularly pleasing in light of the challenging trading conditions experienced in many of its key markets. In constant currency, revenue grew by 8.1% to $1.950 billion while the operating margin improved by 0.7 of a percent to 4.6% driving a 37.4% increase in operating profit to $88.8 million.
Commenting on the results, CEO Brett Dawson said, “The Group’s first half performance has been particularly pleasing in light of the challenging trading conditions we’re experiencing in some of our key markets. Excellent execution in our Services business led our overall revenue and profitability growth in the period. Total Services revenues increased 21.1% and were driven by strong growth of 25.2% in Managed Services.”
The Group’s regional performances were strong, with the exception of the Americas. Australia, Europe, and Middle East and Africa delivered excellent performances. Internet Solutions’ revenue grew by 37.4% over H1 2008 while gross margin declined as a result of increased competitive pressure in the South African market, as well as the impact on input costs of the stronger US Dollar. Plessey revenues were up 57.5% for the period, although gross margins were lower. Revenue growth was supported by orders for site construction in Africa (in particular Uganda and South Africa) and by growth in fibre rollout projects in South Africa.