BRISBANE, Tuesday 22 August 2023: Australia’s leading IT services and solutions provider, Data#3 Limited (ASX: DTL) today announces its results for the financial year ended 30 June 2023 (FY23).
Data#3 CEO and Managing Director Laurence Baynham said: “FY23 was another strong year for Data#3, demonstrated by the record result in what was a challenging economic environment. Our revenue growth was three times greater than the wider IT sector as we continue to capture market share, a testament to our market leading position, full lifecycle service offering, the strength of our vendor relationships and track record in delivering large scale infrastructure and digital transformation projects. We made excellent progress in delivering against our key strategic priorities including growing services, growing vendor incentives, and growing security solutions.
“Meanwhile we are seeing new solutions emerging in artificial intelligence (AI) which is creating substantial opportunities across our customer solutions. As we enter this new era of generative AI, we are already seeing rapid product development incorporating cloud, hybrid work, security, connectivity and data analytics. Microsoft is the global industry leader and as their leading partner in the region we are at the forefront of this change as our customers’ enabling technology is increasingly AI-driven.”
This result was underpinned by Data#3’s long-standing supplier relationships and customer base as demonstrated by national and international awards from several of its vendor partners. The company is seeing growing demand for its solutions especially for large infrastructure and digital transformation projects as businesses continue to prioritise technology as part of their central decision-making. The Australian IT market is predicted to grow to almost $118 billion in 2023 and Data#3 is well placed to continue benefiting from this digital transformation trend.
Total revenue increased by 16.9% to $2.5 billion fuelled by the continued strong growth in multi-cloud revenue and revenue from the sale of products that facilitate its customers’ investments in cloud solutions, such as storage and networks. It also saw strong revenue growth across most of its Services business, as it continued to drive its Services growth strategy.
The company’s consolidated net profit before tax increased by 20.7% to $53.2 million. The consolidated net profit after tax increased by 22.4% to $37.0 million. Basic earnings per share increased by 22.2% to 23.96 cents.
The directors declared a final dividend of 11.90 cents per share, bringing the total fully franked dividend for FY23 to 21.90 cents per share. This represents an increase of 22.3% and a payout ratio of 91.4%. The final dividend will be paid on 29 September 2023, with a record date of 15 September 2023.
The group’s performance continues to be underpinned by its leading market position, unrivalled vendor relationships, large and long-term customer base and highly experienced and committed team.
Mr Baynham said: “We expect technology, and specifically digital transformation, to play a leading role in Australia’s economic future, underpinned by growing demand for security, multi-cloud and AI services.
“We continue to experience a steady increase in the pipeline of large integration project opportunities across our corporate and public sector customers and are seeing strong revenue growth in our high margin Managed Services and Consulting businesses, complementing our growing Software and Infrastructure business units.
“With our leading market position, strong supplier relationships, long-term customer base and experienced team we are confident in our outlook as we enter FY24, despite some expected slowdown in general economic activity. The industry is rapidly progressing, and we are well positioned to benefit.”
The company will present a market briefing on the results starting at 10:00am (AEST) on 22 August 2023.
The following URL will provide access to the live event, and to an archived webcast following the event:
https://webcast.openbriefing.com/dtl-fyr-2023/
