Telecoms and IT solutions provider FoneWorx yesterday reported a 14% rise in revenue, during the six months ended 31 December, mainly driven by organic growth.
“Group revenue increased by 14%, to R52.5 million, from R46.2 million in the previous corresponding period, while gross profit increased from R27.2 million to R31.8 million, a 17% increase from the previous corresponding period,” the company said in a statement to shareholders.
In addition, group operating expenditure decreased by 4%, from R5.8 million to R5.5 million, while staff costs increased 33%, from R7.5 million to R9.9 million.
Profit before tax increased 15%, from R14 million to R16.1 million, and profit after tax grew by 10%, to R10.7 million from the previous corresponding period's R9.8 million.
The company reported that cash on hand increased by 17%, compared to the previous corresponding period; up from R72.9 million to R85.6 million.
“The growth in revenue and earnings for this interim period is primarily from organic growth, although we are looking at possible acquisitions that could enhance the group's growth,” it said in a statement.
The company added that its MediaWorx unit - one of its two main revenue generators - has strengthened its relationship with 86 mobile networks across 36 countries in Africa and continues to provide services to blue chip clients, such as DSTV, for services like Big Brother Africa.
“We have made positive inroads in obtaining new clients and, in particular in the Western Cape. Revenue in the KwaZulu-Natal region has also showed improved results. We anticipate that MediaWorx will grow steadily with new agencies signing up in order for us to manage services on behalf of their clients.”
MediaWorx, along with the group's other main revenue generator, BizWorx, operate in an industry where behaviour patterns are moving from outdated or traditional business to a growing digital element, the company stated.
“This rapid and accelerating digitisation of elements, including content, business processes and product innovation, will work well for the group. Social media and mobile applications will also have a positive impact on the group. With the growth of digitised content, Web access and mobile applications, clients will require the capacity to mine and analyse detailed and granular information not previously available.”
The group says it is well placed to be in this innovation space. “We remain optimistic about the rollout of our fax services in Zambia, Nigeria and Kenya, and anticipate traction in the latter half of this calendar year.”
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