Altech revenue nears R7bn

Johannesburg, 24 Apr 2007

Altech has reported revenue growth of 12%, reaching R6.78 billion, in its audited results for the year to end February 2007, released this morning.

On the back of this steady growth, the diversified group, with strong telecoms interests, has declared a dividend of 240c, to be paid on 4 June. This brings the full-year dividend to 340c, after another dividend of 100c was paid in November.

Altech's net profit rose 15% this year, to R423 million, with headline earnings per share up 10%, to 418c.

The company once again highlighted its Altech Autopage Cellular division as critical to the group's continued growth. This business division increased its postpaid subscriber base by 90 000 this year.

This takes its total subscriber base over the 800 000 mark, as the countrywide franchise network grows to over 150 stores.

Team performance

The group's fleet management and vehicle tracking division, Altech Netstar, also grew its market share. The company says: "Following the award of several sizeable contracts during the year, the company's fleet management business has increased to in excess of 17 000 vehicles."

Altech Netstar now manages a subscriber base of 400 000 users for stolen vehicle recovery and fleet management services, covering assets estimated at R48 billion.

Altech Alcom Matomo's main achievement for the year was beginning the R540 million digital terrestrial trunked radio network for Gauteng South African Police Services - expected to be completed by the end of this calendar year.

One of its smaller divisions, Altech Alcom Radio Distributors, was selected as the "Motorola top distributor" for Europe, Middle East and Africa for 2006.

WiMax and the future

The introduction by DSTV holding company MultiChoice of the personal video recorder (PVR) decoder played into Altech UEC's hands - as its partnerships with MultiChoice and M-Net are widely known.

"However, significant investment in research and development [into PVR technology] continued, with spend almost doubling in the current year," adds the company in its JSE statement.

Altech Arrow Distribution, Altech Isis Information Systems, Altech Cardtronic, Altech Card Solutions and Altech NamITech all contributed to the group's positive numbers.

Looking forward, Altech points out the importance of being awarded a test licence to trial a WiMax 802.16e network in Midrand, North of Johannesburg.

In partnership with the Korean-based wireless firm Samsung Electronics, Altech says it expects this form of mobile WiMax "to emerge as the dominant wireless IP delivery technology for the next 10 years".

Craig Venter, Altech's CEO, says it is his company's strategy to capitalise on convergence and global expansion in its focal areas of telecommunications, multimedia and electronics, and technology.