Data#3 (DTL) H1 2025 earnings summary

Executive summary

• Gross sales grew 7.4% year-over-year to AUD 1.4 billion for H1 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% due to higher-margin services.

• Profit before tax increased 4.1% to AUD 32 million; underlying NPBT 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 declared at 13.10 cents per share, up 4%, with a payout ratio of 90.8%.

Financial highlights

• Recurring business now represents 70% of gross sales, up from 67% 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.

• Software Solutions gross sales rose 11.4% to AUD 975.6 million, driven by security, cloud, and Adobe demand.

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

• Net assets at 31 December were AUD 78.4 million, up AUD 3.5 million, driven by net profit and offset by dividend payments.

Outlook and guidance

• Positive outlook for H2 FY25, with anticipated rebound in Infrastructure Solutions and pent-up demand for AI-enabled devices and multi-cloud solutions.

• No specific FY25 guidance provided, but continued sales peak expected in May and June.

• Microsoft channel incentive changes expected to have immaterial impact in FY25, with mitigation strategies in place for FY26.

• Ongoing growth expected in services, especially Managed Services, security, and multi-cloud solutions.