Mustek positive about local tablet market amid strong FY results - CNBC Africa

Mustek positive about local tablet market amid strong FY results

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The South African ICT company, which released results for the year ended 30 June 2013, said that its profit from operations increased to 137.2 million rand from 136.9 million rand for the same period in 2012.

Cash generated from its operations was up 226 per cent to 154.5 million rand for the year ended 30 June 2013 from the previous comparative year’s 44.6 million rand.

“The addition of Acer and Lenovo to our product range over the past twelve months assisted the revenue growth but negatively impacted margins as these products are typically sold at lower margins,” the group said in a statement.

“The Group expanded its basket of products with the introduction of multiple additions to the product portfolio offering, including Huawei Enterprise Solutions and Miniflex range of fiber cables, as well as solar panels.”

The group’s Mustek segment recorded 2.6 billion rand in revenue from 2.3 billion rand for the same period in 2012. Its Rectron segment recorded 1.7 billion rand in revenue from the previous year’s 1.4 billion rand in revenue.  

Revenue for its geographical segment in South Africa was up to 4 billion rand for the financial year from 3.4 billion rand for the same period in 2012.

Its Mustek East Africa segment’s revenue was recorded at 52.9 million rand from the previous year’s 43.7 million rand.

“There is ongoing industry debate around the future of the desktop. Our view, premised on our ongoing interactions with our customers and this rapidly changing industry, is that the desktop will continue to transition into different formats based on evolving market trends and customer requirements,” the group said.

Headline earnings per share from continuing and discontinued operations were 3.9 per cent higher at 72.8 cents per share from the previous comparative year’s 70.1 cents per share.

Basic earnings were 6.5 per cent higher at 78.43 cents per share from 73.67 cents per share for the comparative period in 2012.

“For some time, sceptics have argued that the PC will be replaced with newer devices such as the tablet (mobile device). We believe that Mustek will become a key player in the local tablet market for the other brands. Over the next few years, this is likely to be a positive revenue driver.”

Mustek is South Africa’s the largest assembler and distributor of personal computers and complementary ICT products. 

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