Listed IT service and technology firm EOH on Wednesday reported a big drop in headline earnings for the six months ended January 2018, citing ‘unfounded media coverage’.<\/p>\n
EOH’s revenue from continuing operations grew by 19% to R8.354 billion as a result of increased activity at EOH’s existing customers. Revenue from services accounts for 84% of total revenue, a significant portion of which is annuity revenue, based on multiple year contracts, it said.<\/p>\n
Revenue for the six month period increased in all areas of the business. “Growth has been focused on existing business which has resulted in organic growthaccounting for 71% of the overall revenue growth. 85% of EOH’s revenue is derived from within South Africa,” it said.<\/p>\n
Operating profit from continuing operations however, declined to R784 million, from R838 million in 2017.<\/p>\n
Headline earnings per share and Earnings per share from continuing operations was 314 cents (2017: 415 cents) and 320 cents (2017: 416 cents) respectively.<\/p>\n
Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the period amounted R1.004 billion, from R1.090 billion before.<\/p>\n
“The recent political leadership changes in South Africa has seen the country enter a phase filled with a renewed sense of hope and optimism. Prior to this, the period under review was characterised by difficult trading conditions, compounded by a unique set of challenges that EOH had to overcome during the period, the group said in a statement on Wednesday.<\/p>\n
“The combination of the macro-economic environment and the adverse, unfounded media coverage that EOH received, temporarily affected the Group’s position in the market,” it said.<\/p>\n
EOH has endured a miserable period, underpinned by a massive sell-off in its share price following allegations of government tender irregularity and what was dubbed a ‘smear-story’ by Business Report in July 2017.<\/p>\n