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Altron FY HEPS up 73% - CNBC Africa

Published 2 weeks ago2 minute read

Altron, the South African technology company, has announced robust annual results for its 2025 financial year, with headline earnings soaring by 73 per cent and operating profit surging by 50 per cent. These impressive numbers were primarily driven by the stellar performance of Altron's high-margin platform businesses, Netstar and Altron FinTech. Despite facing flat revenue post the sale of its ATM business, Altron managed to bolster its cash reserves and increase its dividend payout. To delve deeper into the details behind these remarkable results, Werner Kapp, the CEO of Altron, joined CNBC Africa for an insightful discussion. Kapp highlighted the strategic moves that have propelled the company's success, citing a focused strategy implemented two and a half years ago that emphasized the unique mix of platform and IT services. This strategy, centered around aiding the digital transformation of large South African enterprises, has played a pivotal role in achieving exceptional financial outcomes amidst a challenging economic backdrop. Altron's investment in the growth of its platform businesses, which witnessed a 12 per cent revenue growth, has been crucial in driving annuity revenue, accounting for 63 per cent of total revenue. The platform businesses, particularly Netstar and Altron FinTech, have been consistent top performers, with offerings extending into enterprise solutions and innovative tech-driven services. Netstar, with over two million subscribers, continues to stand out in a competitive space, leveraging data-driven insights to add value to customers and expand its service offerings. Altron CEO, Werner Kapp, highlighted the immense growth potential in South Africa's digital payments landscape, especially in facilitating financial inclusion for the informal economy through partnerships with micro lenders. Kapp also discussed the company's robust balance sheet, boasting nearly a billion rand in net cash, and outlined the capital deployment plans focused on organic growth and potential acquisitions for market expansion. Despite making significant portfolio adjustments, including exiting the ATM business and restructuring Nexus, Altron remains vigilant in pursuing disciplined capital allocation strategies to sustain growth. Looking ahead, Altron aims to capitalize on its competitive advantage in digital and AI capabilities to drive actionable business outcomes and fuel growth. Kapp emphasized the company's strategic priorities, including revenue growth, operational efficiency, transformative expansion, and customer-centric solutions, to navigate uncertainties in the macro environment and sustain success in the years to come. By aligning with these key priorities and leveraging data and AI effectively, Altron is poised for continued growth and innovation in the evolving technology landscape.

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