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Data#3’s FY19 profits leave company on cloud 9

Technology
ASX:DTL      MCAP $1.005B
21 August 2019 19:54 (AEDT)

Cloud solutions provider Data#3’s revenue for the financial year soared to $1.4 billion, on a 19.8 per cent increase.

Profits after tax are also on the rise, up 28.7 per cent, totalling $18.1 million.

Data#3’s CEO and Managing Director Laurence Baynham said the company produced a record result, following significant growth in its core business and public cloud-based revenues.

“Market conditions remained relatively stable in FY19, with digital transformation projects continuing to drive growth in our core infrastructure, software and services businesses,” Laurence said.

Specifically, product revenue for the company jumped 21.3 per cent and services revenue increased 13.3 per cent. With public cloud revenue acting as a standout, up 35.3 per cent to $362.2 million.

Laurence said, “the growth in public cloud was a particular highlight.”

Company Chairman Richard Anderson said: “Performance both in increased profit and solid underlying cash flow has delivered a significant increase in dividend.”

Shareholders will receive a total fully franked dividend of $0.107 per share, which is an increase of 30.5 per cent.

Data#3’s share price rose 9.52 per cent today, sitting at $2.53 apiece at today’s market close.

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