Sluggish economic growth stalks Etion
Revenue of diversified digital technology group slips as clients postpone projects to second half of financial year
Diversified digital technology group Etion has blamed its poor performance for the six months to September 30 on the country’s economic woes, as key customers delayed delivery of multimillion-rand projects. The group, which offers technological services to clients such as Transnet, SA Revenue Service, the home affairs department, Vumatel, Absa and Telkom, attributed the 14.4% slippage in its revenue to, among others factors, the deferment to the second half of the financial year of rail and cybersecurity projects, valued at R22m and R21m, respectively. Etion CEO Teddy Daka said on Wednesday that slow growth affected the company’s customers. Although clients wanted fibre, the number of people taking up the services is not as high as expected, he said, referring to the roll-out of fibre by the country’s major network operators.
He said there is a big gap between the number of “homes passed” by a cable network that can be connected to it and homes connected. “I think the homes pa...