Tech Group Datatec Core Earnings Seen Up 53%
Datatec core earnings per share should rise 52.9% to 60.6% in the half-year to August, the Johannesburg tech group told investors on 20 October.
SOUTH AFRICA · BUSINESS
Key Facts
- —The country South Africa is a middle-income economy at Africa’s southern tip. Datatec, a Johannesburg-listed technology group, sells and runs networking and security systems in over 50 countries.
- —What happened On Tuesday 20 October 2026 Datatec said its core earnings per share for the six months to 31 August should rise 52.9% to 60.6%.
- —The three measures Datatec core earnings are forecast at 29.5 to 31.0 US cents a share, but headline earnings at only 22.1 to 23.6 cents.
- —The drivers Both main divisions, Westcon and Logicalis International, posted record first-half adjusted EBITDA, with an exceptional performance in the United States at Logicalis.
- —The shares Datatec shares traded 2.5% higher at R57.44 (about US$3.50) in mid-morning trade in Johannesburg on Tuesday.
- —What it means for you Datatec also trades in the US on the OTCQX market as DTTLF, and its US unit is a named driver.
- —Still open Revenue, profit in dollars and any interim dividend come with the full results, due on or about Thursday 29 October 2026.
Datatec core earnings per share will rise 52.9% to 60.6% in the six months to 31 August 2026, the company said on Tuesday 20 October. Datatec is a Johannesburg-listed technology group whose Westcon and Logicalis arms sell and run networking, security and cloud systems for business customers worldwide.
Headline earnings, the measure South African listing rules require, will rise only 0.5% to 7.3%. For US readers, one named driver of the stronger operating result is the United States, where Logicalis reported an exceptional performance.
What Datatec Told Investors
Datatec published a trading statement through the news service of the JSE, South Africa’s main stock exchange, on Tuesday 20 October. The exchange’s rules require such a statement once a company is reasonably certain that results will differ by at least 20% from the year before.
Datatec core earnings, which the company calls underlying earnings, are forecast at 29.5 to 31.0 US cents a share, against 19.3 a year earlier. Headline earnings should reach 22.1 to 23.6 US cents against 22.0, and basic earnings 22.8 to 24.3 cents against 21.7.
Why Core Earnings Rise Faster Than Headline
Datatec core earnings leave out items such as share-based pay, amortisation of acquired businesses and deal costs. Headline earnings follow a listing-rule definition that keeps several of those costs in, so the two figures can move apart.
Datatec will publish its full interim results on or about Thursday 29 October 2026, with revenue and profit in dollars. The forecasts in the statement have not been reviewed or reported on by the group’s external auditors.
What Drove the Divisions
Westcon International, the group’s distribution arm for security and networking products, kept up strong growth and posted a record first half at adjusted EBITDA level. Adjusted EBITDA is operating profit before interest, tax, depreciation and amortisation, with share-based pay, restructuring and deal costs removed.
Logicalis International, which designs and runs IT systems for companies, also posted a record first half and turned more gross profit into EBITDA. Datatec credited an exceptional performance in the United States.
Latin America and a New US Deal
Logicalis Latin America had another weak operating performance as it cuts its reliance on a few telecommunications customers. Even so, recoverable tax credits boosted its bottom line significantly.
Logicalis USA bought Loial, a New Mexico cybersecurity firm, with effect from 31 July 2026, according to a Datatec filing. Business Day counted it as the group’s fourth acquisition this year.
How the Shares and the Special Payout Fit
Datatec shares were up 2.5% at R57.44 (about US$3.50) at 9.55 a.m. on Tuesday after touching R58.27 (about US$3.55), Business Day reported. Rand figures here use 16.43 rand to the US dollar, the rate of 20 October 2026.
The price follows a one-off payout, because the shares traded without a special dividend of R29 (about US$1.77) a share from Wednesday 14 October. The dividend totalled R7.05 billion (about US$435 million, the company’s figure) and was paid on Monday 19 October.
Holders of 78,585,515 shares took the cash, R2.28 billion (about US$139 million), while 94,324,733 new shares went to those who chose scrip. A scrip distribution gives shareholders new shares in place of cash.
The payout followed a deal that closed on 4 August, when funds linked to General Atlantic, a US private equity firm, refinanced Westcon. Business Day reported that General Atlantic provided a six-year loan of US$375 million and took a 5% stake for US$25 million.
What It Means for US Readers
The United States is a named driver, since Logicalis USA had an exceptional performance and added a New Mexico cybersecurity firm in July. Datatec shares also trade on the US OTCQX market as DTTLF, and earnings are reported in US cents.
General Atlantic now backs Westcon, the arm that Datatec says kept up strong growth, so American private capital sits inside the group. See the earlier Rio Times report on the Datatec special dividend and the Datatec company profile.
What Is Not Known
The statement gives no revenue, no profit in dollars and no dividend, and those figures arrive only with the interim results. It does not say how much each division earned or how large the Latin American tax credits were.
The Public Investment Corporation, which manages South African public-sector pension money, told Datatec on Monday 19 October that it sold shares and now holds 12.71%. The size and price of that sale, and any link to the payout, are not disclosed.
More: South Africa news in English, every day from The Rio Times.
Frequently Asked Questions
What did Datatec announce on 20 October?
Datatec core earnings per share for the six months to 31 August 2026 should be 29.5 to 31.0 US cents, up 52.9% to 60.6%. Headline earnings are forecast up 0.5% to 7.3%.
Why are Datatec core earnings rising faster than headline earnings?
Datatec core earnings leave out items such as share-based pay, amortisation of acquired businesses and deal costs. Headline earnings keep several of those costs in, so the two measures can diverge.
When will Datatec publish its full half-year results?
Datatec expects to release interim results on or about Thursday 29 October 2026. The forecasts in its trading statement have not been reviewed by its auditors.
Can US investors buy Datatec shares?
Datatec is listed on the JSE in Johannesburg and also trades on the US OTCQX market under the symbol DTTLF. The shares carry currency risk because Datatec reports in US dollars while its main listing trades in rand.
What was the special dividend Datatec paid this month?
Datatec paid a special dividend of R29 (about US$1.77) a share on Monday 19 October, worth R7.05 billion (about US$435 million) in total. Shareholders could take new shares instead of cash.
Sources: Datatec trading statement, JSE SENS, 20 October 2026; Business Day, Datatec shares rise on upbeat earnings forecast, 20 October 2026; Datatec special dividend results, JSE SENS, 19 October 2026; Datatec special dividend declaration, JSE SENS, 24 August 2026; Datatec acquisition of Loial, JSE SENS, 3 August 2026; Business Day, Datatec concludes deal to finance Westcon’s growth, 19 June 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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