JSE-listed investment company MICROmega's spending on its cloud offerings will contribute to earnings in the new financial year.
During the year to December, MICROmega sold and closed businesses that were not contributing to profit, and refocused its investments into IT and its traditional support-service operations. Closing the entities dropped headline earnings by R18 million, it says.
The company yesterday said revenue moved higher, from R682.3 million to R775.5 million, in the year to December, while net profit moved to R11.8 million, from R7.8 million.
Its recently-launched converged communication provider, Turrito Networks, did not contribute to earnings during the year.
“The cloud computing products developed over the past three years are housed within this business and have only been taken to market in 2012,” says MICROmega in a statement to shareholders.
The company says since the launch of its first product this year, it has secured 20 public sector clients and a number of large multinationals.
MICROmega is not certain as to how much demand it will generate, but is confident the unit will provide strong earnings growth in future. “We are currently performing live proof of concept trials at a number of institutions and corporates in SA,” it says.
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