Wednesday, 19 August 2020 11:38

Public cloud drives revenue, profit increases for Data#3 Featured

Data#3 CEO Laurence Baynham Data#3 CEO Laurence Baynham

Australian listed IT services provider Data#3 increased revenues by 14.9% to $1,625.9 million for the full year 2020 on the back of strong growth in public cloud revenues, which were up by 60.4% to $581.0 million.

The Brisbane-heaquartered Data#3 (ASX:DTL) also returned a net profit after tax (excluding minority interests) of $23.6 million, up by 30.5%, and declaring a final dividend of 8.80 cents per share, bringing the total fully franked dividend for FY20 to 13.90 cents per share - representing an increase of 29.9% and a payout ratio of 90.6%.

Data#3 lists FY20 key metrics as:

  • Revenue up 14.9% to $1.6 billion
  • NPBT up 28.2% to $34.1 million
  • NPAT (excluding minority interests) up 30.5% to $23.6 million
  • EPS up 30.5% to 15.35 cents per share
  • Total fully franked dividend up 29.9% to 13.9 cents per share
  • Strong balance sheet with minimal debt

“We are delighted with the performance of the consolidated Data#3 business, which delivered another record result in what has been an extraordinary year. The result demonstrates the inherent strength and relevance of our solution offerings in an evolving market, and the growth in public cloud was a particular highlight,” said Data#3 Chief Executive Officer and Managing Director Laurence Baynham.

“The non-financial measures indicate the underlying health of the business has continued to strengthen. Our staff and customer satisfaction surveys produced record high results; we succeeded in winning a cross-industry Employer of Choice award for the fifth year in a row; and we were recognised by many of our global partners with national and international awards. In addition, we made headway with a number of our strategic business improvement initiatives.”

Noting that Data#3’s long term objectives are on track, Baynham said, “We remain confident in the company’s longer-term strategy. We have a robust business, no material debt, solid long-term customer relationships, committed supplier partnerships, and a highly experienced and productive team.”

And on the company’s outlook, Baynham said, “Our expectation is that technology will play a major role in Australia’s economic recovery from the pandemic, and we remain well positioned to capitalise on those opportunities”. 

“The timing of the recovery is less certain, and consequently we are unable to provide meaningful commentary on our FY21 outlook at this stage. Our long-term financial goal remains to deliver sustainable earnings growth.”

Data#3’ Chairman Richard Anderson said: “Data#3’s performance both in increased profit and solid underlying cash flow has delivered a significant increase in dividend. Combined with a very strong share price performance, this provides shareholders with an outstanding return for the year.”

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Peter Dinham

Peter Dinham - retired and is a "volunteer" writer for iTWire. He is a veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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