Johnnic Digital, which recently reported a 111% increase in earnings before interest, tax, depreciation and amortisation, says there is upside ahead, as many businesses are only starting to use the Internet efficiently as a tool.
The results of Johnnic Digital, the electronic arm of Johnnic Communications, were included in the March year-end figures released by its parent last week.
The division`s CEO, Neil Jacobsohn, says Johnnic Digital expects further good growth in the current financial year.
In the past year, I-Net Bridge, Career Junction, MTN NS and eDegree all performed well, with the remaining divisions either at breakeven or close to it.
Jacobsohn says there is considerable upside ahead as many businesses in SA are only starting to use the Internet efficiently as a business tool.
"The hype is gone, serious business players are now using the Internet to operate more efficiently across disciplines as diverse as sales, procurement, human resources and training. This is the real power of the Internet."
He says the Internet is also now recognised as a powerful delivery mechanism and tool in education.
The division`s results vindicated the decision to move out of the online consumer market and focus on business and education, Jacobsohn says.
In addition, consumers are still in the mindset that sees Internet services as free, although running a good Web service is expensive.
He says the combination of SA`s demographic make-up and "excessively expensive Internet connectivity costs" severely limit growth prospects in the online consumer market.
This is one of the reasons Johnnic Digital moved away from the free Internet concept, other than for marketing and promotional sites for its businesses.
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