With only a few days to go before the end of the year, looking back on 2014 it’s clear to see who were the big winners in the South African tech sector.
SA tech companies have had a generally positive performance on the JSE this year – with 15 of the 24 companies analysed turning a positive gain on their shares during the course of the year.
Clear winners include Telkom, which saw its share price grow 142% in value over the year, along with a continued strong performances by EOH and media giant, Naspers.
These are the tech companies who managed to perform well in 2014, increasing their stock value on the JSE between 2 January and 10 December.
SA tech and telecoms top share performers (shares under R10ps)
| Company | 2 January | 28 December |
% Change |
| Huge Group | R0.56 | R2.29 | 308.9% |
| ConvergeNet | R1.00 | R2.10 | 110.0% |
| Telemasters | R0.80 | R1.47 | 83.7% |
| Compu-clearing | R3.75 | R6.47 | 72.5% |
| Digicore | R1.80 | R2.98 | 65.6% |
| Adapt IT | R4.90 | R8.00 | 63.3% |
| Mustek | R5.20 | R7.90 | 51.9% |
| Business Connexion | R5.49 | R6.15 | 12.0% |
| Foneworx | R2.32 | R2.50 | 7.8% |
| Blue Label Telecom | R8.44 | R8.77 | 3.9% |
SA tech and telecoms top share performers (shares over R10ps)
| Company | 2 January |
28 December |
% Change |
| Telkom | R28.34 | R68.54 | 141.8% |
| EOH | R82.15 | R113.37 | 38.0% |
| Naspers | R1,105.98 | R1,489.06 | 34.6% |
| Datatec | R51.80 | R55.80 | 7.7% |
| MTN | R217.14 | R219.25 | 1.0% |
2014 Highlights
2014 was clearly the year for the much-touted Telkom turnaround. After falling to extremely low levels in 2013 (below R15 a share), under the direction of CEO Sipho Maseko, the group has managed to more than double its value since the start of the year.
The turnaround hasn’t come without cost, however as Telkom implemented massive cost-cutting measures, retrenched hundreds of its staff, and changed its strategy in terms of its loss-making mobile unit.
Naspers, on the other hand, owed much of its success in 2014 to another strong performance from its 34% holding in Chinese Internet company, Tencent.
Tencent’s performance (reporting Year-on-year revenue growth of 37%) was partially offset by higher development spend in Naspers’ own e-commerce businesses, resulting in a 67% increase in trading profit to R6.5 billion for company.
IT services and outsourcing firm, EOH continued its line of annual growth, which the company’s CEO attributes to its “unfailing business philosophy that is centred around people”.
The company’s strong business outsourcing, cloud and technology management services – along with a rapidly expanding geographical footprint – also probably have something to do with it.
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