ConvergeNet swings to a loss

ICT infrastructure supplier ConvergeNet has recorded an operating loss of R7.14 million in its financial results for the year ended August 2012, citing an increase in operating expenses. The group made a prior profit of R27.32 million.

Revenue declined marginally to R1.017 billion, from R1.029 billion in the same period in 2011, while ConvergeNet reported a diluted headline loss per share of 4.98 cents, from a diluted HEPS of 2.68 cents before.

The group noted that operating expenditure increased by 29.8% to R286.6 million compared to R220.8 million for the corresponding period.

Included in operating expenditure was the cost of establishing Simat Management Company, a site maintenance entity to service the mobile operators in Africa in partnership with Matla Group.

ConvergeNet, which has a 51% interest in Simat, said that operations commenced in March 2012 after being awarded a contract by one of the leading mobile operators in Africa.

Looking ahead, the group said that following the restructuring of the board, it has progressed its strategy for the next five years, which includes a focus on expanding its activities into more than 12 identified African countries and streamlining of its operations.

“We expect our performance to improve in the next year and beyond and through growing our African footprint, new innovative service offerings, strong sales force and proven technical abilities.

“ConvergeNet will also continue to prudently invest in identified strategic growth areas such as a NOC, Cloud Computing, Hosted and ICT Managed Services,” it said.

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ConvergeNet swings to a loss