Datacom revenue up, profit down

Company reported $725 million in revenue this year

Datacom's latest financial results show the company's revenue grew by 8.7 percent in the year ended on 31 March but the group's trading profit was impacted by goodwill impairment costs of $3.3 million and the closure of the company's Sydney-based software development business.

Datacom reported $725 million in revenue this year, up from $667 last year. Trading profit before tax and impairment charges increased by 7.8 percent from $42.1 million to $45.4 million. However, the net profit before tax was $38.9 million, down from last year's $42.1 million.

Net profit after tax went down to $22.3 million, from last year's $30.2 million. The company attributes these numbers to the lower pre-tax profit figure and an increase in the current tax chargeof $4.5 million as required under accounting rules in response to the recent changes to the tax law around deductibility of depreciation on buildings in New Zealand. The $4.5 million additional tax charge related mainly to the IRD’s decision not to allow depreciation on Datacom’s datacentres.

In total, the company gathered $380 million in revenue from overseas operations, ahead of $345 million from its New Zealand business.

Datacom employs 3,371 staff, of which 1,864 are based in New Zealand, 938 in Australia and 569 in Asia.

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