Datacom report revenue growth despite overall loss
Datacom Group has delivered another year of revenue growth, increasing revenue by 9.3% to NZ$1.27 billion for the Financial Year ended 31 March 2018. The Group profit after tax for the year was NZ$23.5 million.
Datacom now has twenty years of continuous revenue growth. Over the past ten years alone Datacom has more than doubled its revenue, with a compound annual growth rate (CAGR) of 8.5% across that period, showing the company’s durability and adaptability in a time of massive market change.
Datacom delivered a revenue increase of 8.8% in Australia and Asia, and 9.8% in New Zealand, driven by key wins such as the Department of Home Affairs in Australia, and Auckland Airport, NZ Lotteries Commission and Vector Energy in New Zealand.
In addition to these wins, Datacom embarked on major new projects with existing customers such as Transport for NSW, The Department of Premier and Cabinet in Queensland, and the Accident Compensation Corporation (ACC) in Wellington.
Capital expenditure increased by 53% over the prior year to $55.4 million, and operating expenditure on major investments increased by 35% to $19.1 million.
These investment increases support the company’s strategy to grow its capabilities and global footprint and support the creation of new lines of business and solutions utilising Datacom’s own intellectual property.
Datacom also opened new offices in Auckland, Adelaide, Singapore and a new partnership with Australian data centre provider, AirTrunk.
The Datacom Systems business continued to generate the largest percentage of revenue for the Group, particularly through projects based around IT Managed Services, 3rd Party Products and Licensing, and custom software development.
Datacentres, Networks, and public cloud consultation and implementation projects continued to perform strongly. Datacom’s own hybrid cloud solution, DCS, continued to grow and saw significant investment into Datacom’s new Azure Stack solution.
Datacom now operates from 36 locations across Australia, New Zealand, Asia, Europe, and the USA. Employee numbers increased to 5,332, up 9.3% from the year prior.
Datacom CEO Greg Davidson says, “Datacom’s strategy and new organisational structure positions us well to meet current and future client needs, as well as future growth across all markets.
“We’re confident in our ability to capitalise on strategic growth areas such as cybersecurity and customer experience, and our ability to deliver high-value solutions consistently to our customers.