Dimension Data delivers double digit growth
Dimension Data delivers double digit growth
Convergence Partners investee, Dimension Data, which was delisted about a year ago, after being bought out by Japan-based NTT in a R24.2 billion deal, reported double-digit top line growth for the year to September.
The company says revenue grew 14.8%, to $5.79 billion, from $4.74 billion for the 2010 financial year. It also reported double-digit operating profit growth of 10.8%.
Dimension Data’s system’s integration business, which makes up 78% of total revenue, grew 12.8% year-on-year, to $4.5 billion, and operating profit was 7% higher, at $202.7 million.
By region, Europe, Asia and Australia delivered good growth, while Middle East and Africa was steady, says Dimension Data. In the Americas, Canada, Mexico and Chile recorded “excellent growth”, but operating profit in the US was flat, it adds.
Internet Solutions grew revenue 6.9%; Plessey lifted revenue 22.9%; and Express Data’s revenue expanded by 24.3%. Merchants and Learning Solutions delivered “strong contributions”, the company says.
Internet Solutions grew operating profit 9.1% at an operating margin of 12.6%. However, operating profit in Express Data declined 5.6% for the year due to product margin pressures.
Dimension Data says Plessey’s operating profit improved “substantially” off a low base in the 2010 financial year.
CEO Brett Dawson says “this year’s double-digit growth is an outstanding performance”, considering the current volatile global economy and tough trading conditions.
In the next 12 months, the group will focus on building its cloud solutions and services portfolio, and global cloud infrastructure and platform.
“The group’s acquisition of OpSource in July, and the formation of our cloud business unit were critical steps in accelerating our cloud computing strategy,” says Dawson. He adds the company is on track to go to market with its cloud value proposition.