Data#3 (DTL) H2 2024 earnings summary

Executive summary

• Achieved record gross sales of AUD 2.8 billion (or $2.8B) for FY24, up 7.6% year-over-year, with net profit before tax rising 16.6% to AUD 62.1 million and basic EPS up 16.9% to 28.0 cents.

• Recurring business increased to 67% of sales, reflecting a strategic shift toward annuity-based offerings.

• Recognized with multiple national and international industry and employer awards, including Microsoft Surface, Cisco global partner, and Employer of Choice accolades.

• Maintained a strong balance sheet with no borrowings and a high dividend payout ratio of 91.1%, with fully franked dividends up 16.4% to 25.5 cents per share.

• Continued ESG progress, developing a Net Zero Strategy and winning APAC sustainability recognition.

Financial highlights

• Gross profit increased 7.8% to AUD 270.1 million, with gross margin on gross sales stable at 9.8%.

• Services sales grew nearly 10% to AUD 376 million; software licensing sales rose 11% to AUD 1.8 billion.

• Return on equity improved to 58.0% from 54.2% in the prior year.

• Interest income rose to AUD 9.7 million, benefiting from higher cash balances and rates.

• Internal staff costs increased 7.6% due to 2% headcount growth and wage inflation.

Outlook and guidance

• Expects continued growth in services, especially managed services, multi-cloud, security, and AI-driven solutions.

• Public sector infrastructure investments and annuity offerings to drive future growth; infrastructure may face ongoing decision delays.

• No specific FY25 guidance provided; sales peak anticipated in May and June, with sustainable earnings growth as the goal.

• Interest income for FY25 projected at approximately AUD 8.5–8.6 million, assuming stable cash rates.