Ioco posts 46% profit jump, signs MySky acquisition
Revenue rose 3.5% to R2.83bn, while EBITDA increased 21% to R305m and operating profit climbed 12% to R240m. Earnings per share and headline earnings per share both increased to 28c.
The company says the results reflect progress in its turnaround plan, which has focused on cost rationalisation, decentralisation and capital allocation. During the period, Ioco repurchased 6.4 million shares for R27m and reduced net interest-bearing bank debt to R512m, with R60m repaid through operating cash flow.
CEO Rhys Summerton says the group is now shifting from stabilisation to growth.
“Our strategy is delivering. We have improved profitability, embedded a decentralised model to empower business unit leaders to deliver their growth targets and focused on disciplined capital allocation,” he says.
As part of that strategy, Ioco has signed a binding agreement to acquire the MySky Group of Companies, which provides enterprise networking and managed infrastructure services.
The deal includes an initial consideration of R52m, with additional earn-out payments linked to performance targets over time.
Ioco says the acquisition will expand its enterprise client base, strengthen its connectivity and infrastructure capabilities, and add recurring revenue to the business.
The group says it has revised its guidance upward as it builds on first-half momentum.
