NEW REVENUE STREAMS
Cognition offers ‘disruptive technologies’ in new products
Cognition Holdings will market its new products and services aggressively after the restructuring of the business
Cognition Holdings would market its new products and services aggressively after the restructuring of the business over the six months to December, it said on Wednesday.
The company said it had reinvented itself into a consulting, technology, marketing and research company. Previously, it provided a technology platform for bulk text messages used mainly for TV and radio voting competitions.
It has introduced a range of new products such as a cloud-based technology platform that is intended to complement and offset declining revenues from the Fax2email service.
It had also made a number of acquisitions giving it an entry into new markets.
"We believe that the products we are introducing are disruptive technologies," Cognition CEO Mark Smith said.
Cognition’s revenue for the six months to December increased 47.5% to R121m, lifted by increased business activity within the knowledge creation and management segment of the business. This segment now contributes 77% of the group’s revenue and 64% of its gross profit.
The group’s historical core business, the active data-exchange services, which includes Fax2email, is still delivering good margins but revenue has declined by 29% to R28m and gross profit is down 14%. Cognition’s total gross profit increased 20% to R48.2m.
Profit after tax increased 27.1% to R11.2m over the period. Headline earnings per share rose 25.3% to 7.53c.
Smith said despite difficult trading conditions in SA, the group was confident that its new platforms would open up new revenue streams and complementary opportunities.