Datacom reports bumper FY21 from strong cloud, digital demand

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Datacom reports bumper FY21 from strong cloud, digital demand

Datacom has released its results for the 2021 financial year, reporting strong revenue and profit growth on the back of strong demand for cloud infrastructure and digital projects.

The company revealed its revenue came in at $1.41 billion for the year ended 31 March 2021, up from $1.34 billion the previous year.

Net profit after tax was $35 million for the period, up from $19 million in FY2020. Full-year operating cash flow is at $156 million.

In the announcement, Datacom said the numbers reflect the increased demand for technology services and data centre capability, citing a major shift to cloud solutions and a surge in demand for essential services.

“After a year of challenges for our countries and communities, it has never been more important for us to ensure the wellbeing of our people, and help our customers stay connected and operational,” Datacom Group chief executive Greg Davidson said.

“We’ve learned a lot from our response to COVID-19 and the significant change in the way we work, support our customers and the meaningful impact we can have on the organisations we work with.

“We saw an immediate acceleration in the demand for cloud infrastructure, for digital projects that would help businesses continue trading and enable local authorities and government agencies to increase their connection and services to citizens.”

Datacom also credited the growth to organisations across Australia and New Zealand continuing to move to hybrid clouds, usually avoiding an all-in approach to one cloud over another.

Demand for business platforms also continued increasing as more customers sought to keep operational during lockdowns, including Microsoft’s Dynamics 365 and other platforms.

Datacom Connect also saw short-term expansion to support Australia’s Federal Government
COVID-19 response, providing telehealth frontline essential services. The business had been recruiting hundreds of people since last year, working with airline industry partners who were impacted, to provide employees who had been stood down with short-term work during COVID lockdowns.

The company also cited strong growth in local government management software, cybersecurity, payroll and data centres.

Looking ahead, Datacom looks to focus on talent amid the ongoing “immigration challenges” causing a reduced talent pool in both Australia and New Zealand.

“To respond to the challenges faced in hiring technology talent on both sides of the Tasman, we are heavily prioritising and investing in our own people to reskill and upskill, including our
Transform programme,” Davidson said.

“We are working with partners in the education field to increase the rates of training for key areas, such as cybersecurity, and with a range of new partners [in New Zealand] to develop our talent, but all these things take time to deliver results so it’s going to be a key challenge we all face in FY22.”

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