Dimension Data today reported revenue growth of 15.9%, to $1.45 billion, with both group operating profit and group operating margin increasing "considerably" for the first six months ended 31 March 2006.
Group operating profit increased by 33.3%, from $28.1 million in the first half of 2005, to $37.4 million, and group operating margin increased from 2.2% to 2.6%, the company says in a statement.
"It is pleasing to note that we are growing our market share specifically in the area of network integration which is at the centre of the convergence trend," says CEO Brett Dawson.
"As a result of this trend, we experienced notable growth in our converged communications and security lines of business and fully expect the market trend of the convergence of voice and data onto a single IP infrastructure to continue, and the demand for our skills and experience to increase."
The group adds that the growth in revenue reflects a 12.2% increase in the network integration line of business and an overall good performance from its solutions lines of business.
Improved performance
As a result of the improved performance of its South African business and the fact that Internet Solutions is now a wholly-owned subsidiary, the group raised a deferred tax asset of $19.5 million during the period.
Dimension Data`s African revenue grew by 9.1%, with services revenue increasing by 13.3%, during the period under review.
Reported operating profit improved from $21.9 million, in the first half of 2005, to $27.9 million, and the operating margin increased from 9.8% to 11.4%. Overall gross margin improved from 30.9% in the first half of 2005, to 32% this period. Gross profit grew by 13.1% for the period.
"The financial results of the first half build on the positive momentum of last year. We continued to focus on increasing revenue and containing costs to deliver profitable growth," says Allan Cawood, CEO of Dimension Data in Africa.
"This half, we increased our shareholding in both Plessey and Internet Solutions, which has further enhanced our market offering and our ability to deliver improved telecommunications services throughout the continent."
Looking ahead, Dawson comments: "The successful execution of our strategy within our chosen market segments is delivering positive results for the group. Going into the second half, we are confident we will continue the momentum and deliver improved returns to shareholders."
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