Datatec warns of profit fall amid mixed Covid-19 effect
Some of the tech group’s businesses benefited from increased online activity, although there were negative currency effects
Technology group Datatec says the Covid-19 pandemic has had a mixed effect on its various businesses, resulting in a slight fall in group revenue during its six months to end-August.
Group revenue fell 1.2% to $2.03bn (R33.58bn) to end-August, with the group’s Westcon International subsidiary benefiting from increased demand for online services.
Westcon, which saw revenue rise 4% to $1.3bn, offers services including networking and security.
Logicalis, which also provides services such as networking, saw revenue fall 10% to $700m, with the group reporting increased revenue in Europe, but reduced revenue elsewhere. Latin America was adversely hit by foreign exchange movements.
Headline earnings per share for the six months to end-August are expected to fall by between 17% and 35% lower than the prior period’s 2.3 US cents, the group said.
In morning trade on Wednesday, Datatec’s share was down 3.09% to R21, having lost 36.75% so far in 2020.
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