Menu
Datacom revenue surpasses $900 million as long-term growth plan continues

Datacom revenue surpasses $900 million as long-term growth plan continues

“This is a sound result for Datacom."

Datacom Group has delivered a revenue increase of 6.3 percent to NZ$937 million, against last year’s $881 million.

According to the New Zealand-owned business, the Group profit before tax for the year stands at $35.3 million, below the previous year’s $64.7 million, which the company branded as “unusually high”.

The 2013-14 period profit was boosted by the $25 million divestment of the Group’s Asia contact centre business in April 2013 while during the 2014-15 period $11.3 million in operational expenditure has been invested into programmes of business enhancement and the evolution of new products and services, predominantly in Datacom’s intellectual property and vertical markets specialisation.

“This is a sound result for Datacom,” says Craig Boyce, Chairman, Datacom Group.

“The executive team is delivering on a progressive and sustainable business strategy and we are pleased with the solid overall performance and strong revenue growth, which maintains the 10 year compound annual growth rate for revenue at 11.2 percent.”

New Zealand

Boyce says the New Zealand business has increased its revenue year on year with an increase of 9.2 percent, continuing a decade plus of consistent growth, showing notable uplift in its regional centres, adding new customers on a “continual basis.”

For Boyce, successful delivery of data centre relocations and outsourced data centre network and systems management for Fonterra and the transition to full outsourcing and service aggregation for the New Zealand Ministry of Business, Innovation and Employment were notable as project highlights of scale.

Furthermore, the year saw IDC's market share analysis indicate that Datacom New Zealand is now the largest IT services provider, inclusive of business consultancy services, in the New Zealand market.

“The increases in revenue and trading profit alongside our continuing investment of $11.3 million operating expenditure and $30 million capital expenditure reflects the Group’s balanced push for business growth,” adds Jonathan Ladd, CEO, Datacom Group.

Australia

Across the Tasman, the Australia Systems business increased revenues by six percent with multiple new contracts signings indicating healthy business growth for Datacom Australia.

A highlight was Datacom being awarded the contract to supply ICT systems and support services to the Australian Government Department of Health, with an initial five year contract value of A$242 million.

Ladd says that this contract is a departure from traditional IT Services Outsourcing with a structure to provide an outcomes-based fully managed service, with consumption-based pricing, and a strong focus on service delivery.

“This contract reflects the changing way these services are required to be delivered to customers and is a positive sign that our focus on developing highly flexible ‘As a Service’ models is the right direction for customers,” Ladd adds.

A/NZ Market

Collectively, Ladd says Datacom’s New Zealand and Australia-wide data centre network continues its profitable trajectory as the business adapts to the uptake of public cloud.

Datacom’s data centre acumen was recognised this with the New Zealand Orbit and Kapua data centres being rated by the Uptime Institute (UTI) as being among the very best run data centres in the world.

Both facilities were awarded the Management and Operational Stamp of Approval from the UTI, the first and to date only data centres in Australasia to have received these Stamps of Approval.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags CloudDatacom

Featured

Slideshows

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Reseller News has honoured the leading female front runners of the New Zealand ICT industry at the 2019 Women in ICT Awards (WIICTA) in Auckland. The awards recognised standout individuals across six categories, spanning Entrepreneur, Rising Star, Shining Star, Community, Technical and Achievement. Photos by Gino Demeer.

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA
Reseller News kicks off awards season in 2019 with Judges' Lunch

Reseller News kicks off awards season in 2019 with Judges' Lunch

The 2019 Reseller News Innovation Awards has kicked off with the Judges Lunch in Auckland with 70 judges in the voting panel. The awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors. Photos by Christine Wong.

Reseller News kicks off awards season in 2019 with Judges' Lunch
Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Show Comments