Logicalis posts a drop in revenue due to FIFA World Cup - CNBC Africa

Logicalis posts a drop in revenue due to FIFA World Cup


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Datatec is an international ICT provider in over 50 countries. PHOTO: Getty Images

[DATA DTC:Datatec Limited] stated that their integrated IT solutions business, Logicalis, posted an eight per cent drop in revenue because telecommunications and service providers had suspended installation activities on their networks for the 2014 FIFA World Cup.

The company added that the slow-down at Logicalis’ Brazil division is expected to impact group earning at the half year reporting stage however the full year results for 2015 is expected to remain unchanged due to favourable market conditions .

“While Logicalis has experienced a slow-down in trading we remain confident, based on the significant backlog of business, that trading will recover in the second half,” said Jens Montanana, chief executive officer of Datatec.

(READ MORE: Datatec appoints Logicalis CEO)

Overall, the group’s revenues are higher than those for the four months ended 30 June 2013.

On the 14 May 2014, the company published their forecast for the financial year ending 28 February 2015, noting that revenues were above six billion US dollars while underlying earnings per share rose more than 40 US cents.

(READ MORE: Datatec revenue flows due to its Logicalis business)

The group stated that revenue growth was largely driven by an improved performance at Westcon, Datatec’s global distribution of advanced networking, security and unified communications solutions division.

Westcon accounted for 72 per cent of total revenue while Logicalis made up 27 per cent. Overall, Westcon posted an 11 per cent increase in revenue with growth achieved in all their geographical markets except Asia Pacific.

(READ MORE: Datatec appoints Westcon CEO)

 “We are very pleased with the progress Westcon is making in increasing operating efficiency and we are seeing volume pick up and market share gains,” added Montanana.

 “Trading conditions across the group remain varied. However, our strategy of developing a global footprint and the diversification of our business streams continues to provide resilience and sustainable growth for the group.”