2 Sep 2014

Datacom profit rises after sale

10:05 am on 2 September 2014

Datacom's annual net profit jumped 43 percent reflecting a profit from selling an Asian call centre.

The New Zealand-headquartered IT business posted a $51.4 million annual net profit for the year ended March.

However, operating profit before asset sales was flat and revenue rose 1.3%.

Chief executive Jonathan Ladd said strength in the New Zealand business was offset by a weaker performance in Australia.

"Australia was challenging, we had a downturn in the middle of the year, from our contraction in the economy in the manufacturing and resource sectors, which meant that people if they had discretionary expenditure - whethe it was product or projects - then they put that off. But we've seen that bounce back again since."

The New Zealand business had increased client numbers and capabilites, and more investment had gone in, Mr Ladd said.