Data#3 (DTL) H1 2025 earnings summary

Executive summary

• Gross sales grew 7.4% year-over-year to AUD 1.4 billion for 1H FY25, driven by strong growth in Managed and Maintenance Services and Software Solutions, while Consulting and Infrastructure Solutions lagged.

• Gross profit rose 10% to AUD 143.6 million, with average gross margin improving to 10.2%.

• Profit before tax increased 4.1% to AUD 32 million; underlying PBT up 7% excluding AUD 0.9 million in one-off redundancy costs.

• Net profit after tax rose 4.3% to AUD 22.4 million, with basic EPS up 4.2% to 14.43 cents; interim dividend up 4% to 13.10 cents per share, payout ratio 90.8%.

• Recurring business now represents 70% of gross sales, reflecting a shift to multi-year and as-a-service offerings.

Financial highlights

• Five-year CAGR in gross sales is 14.6%; recurring gross sales up from 67% to 70% year-over-year.

• Services gross sales up 19.3% to AUD 205.4 million; product-based gross sales up 5.6% to AUD 1,207.3 million.

• Statutory revenue declined 1.9% due to Infrastructure Solutions weakness and revenue recognition changes.

• Net assets at 31 December were AUD 78 million, up AUD 3.5 million, with strong cash position and no debt.

• Cash balance at 31 December 2024 was AUD 131 million, up from AUD 117.1 million a year earlier.

Outlook and guidance

• Positive outlook for second half FY25, expecting rebound in Infrastructure Solutions and continued growth in services and software.

• Anticipates ongoing delayed decision-making for large capital purchases but expects pent-up demand for AI-enabled devices and multi-cloud solutions.

• No specific FY25 guidance provided; expects sales peak in May and June.

• Microsoft channel incentive changes expected to have immaterial impact in FY25, with mitigation strategies in place.