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DataPro posted jump in
revenue
ADSL
South Africa (Broadband South Africa), 24 April
2007
On Thursday
JSE-listed group DataPro posted an excellent set of
results for the six months to February. Despite the
excellent results posted DataPro seem to be worried about
certain constraints on growth.
‘Yesterday DataPro posted a 234
percent jump in revenue to R263 million for the six months to
February. Interim operating profit rose 154 percent to R16.3
million and net profit surged 150 percent to R11.6 million’
(Icasa is hindering growth, says DataPro, Mochiko, Business
Report, 20 April 2007).
In other words, DataPro investors
have a lot to smile about.
How did DataPro manage to
post such an excellent set of results?
Organic growth and acquisition
strategy.
DataPro’s Chief Executive
Officer, Douglas Reed, ‘…attributed the performance to strong
organic growth in the voice and data businesses, and the
group's acquisition strategy’ (Icasa is hindering growth, says
DataPro, Mochiko, Business Report, 20 April 2007).
In other words, DataPro’s
performance can be attributed to both organic and non-organic
growth.
It seems for one that the
acquisition of Orion Telecom for R380 million last year is
paying off well. Orion Telecom is a supplier of least cost
routing (LCR) and voice over Internet
(VoIP).
What was the market’s
reaction to the news?
Positive.
‘DataPro's share price rose 1.21
percent to close at R1.67 on the JSE yesterday’ (Icasa is
hindering growth, says DataPro, Mochiko, Business Report, 20
April 2007).
In other words, the market
responded positive to the news.
What are the constraints
on growth that DataPro is worried about?
Delays in finalising
interconnection rates.
‘Delays in finalising
interconnection rates by Telkom and the Independent
Communications Authority of SA (Icasa) would constrain
DataPro’s growth in the market…’ (Icasa is hindering growth,
says DataPro, Mochiko, Business Report, 20 April 2007). This is
according to DataPro.
In other words, Telkom
and Icasa’s failure to finalise interconnection rates in
a timely manner can place constraints on DataPro’s
growth.
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