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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.

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