South African ICT company Datatec reported an after-tax profit of $108.7 million for the year ended 28 February 2026. This was up 56.9% from $69.3 million the year before, MyBroadband reported.
The group’s adjusted earnings before interest, depreciation and amortisation (EBITDA) rose by 45.5% to $290.1 million. Underlying earnings per share went up by 35% to $0.482.
“Datatec has been a tremendous success story in the last year or so. One story has been the quality and improvement of underlying earnings, the other’s been the cash return,” said Jarred Houston, an analyst at All Weather Capital.
Houston said the company returned nearly a third of its market value to shareholders through a special dividend. This came after it restructured some of its business units.
Much of the growth came from Datatec’s international businesses. The two biggest are Westcon, a cybersecurity and networking firm, and Logicalis, which provides IT infrastructure, cloud and networking services.
Westcon International’s revenue grew by 18% to $3.42 billion in the 2023 financial year. It rose again to $3.69 billion in 2024.
Its adjusted EBITDA climbed every year after that. It reached $149.9 million in 2025 and $172.4 million in 2026. Westcon’s gross invoiced income rose by 9.6% to $5.7 billion in the 2026 financial year.
Logicalis International grew its revenue from $1.23 billion in 2023 to $2.15 billion in 2026. Its adjusted EBITDA rose by about 73% over the same period, from $66.2 million to $114.5 million.
Datatec’s Latin American business had trouble in the 2023 and 2024 financial years. The company then restructured the unit to make it more efficient.
In 2026, adjusted EBITDA for the Latin American unit rose by 20.9% to $24.3 million. Its profit before tax jumped by 415.4% to $13.4 million.
The group also grew through deals. It raised its stake in UK management consultancy Mason Advisory to 80% in the 2024 financial year. Mason Advisory earned $37.1 million in revenue in the 2025 financial year.
Houston said Datatec’s growth looked likely to continue. He said the company supplies parts of the IT value chain that are growing.
“These businesses have been well managed, structured well, and are now seeing the benefit of a little bit of tailwinds in the industries that they’re involved in for the first time,” he said.
Zwelakhe Mnguni of Benguela Global Fund Managers was asked to choose between Datatec and UK-based Bytes Technology Group. He said he would likely pick Datatec.
“Geographically, they are quite well-diversified, whereas Bytes is more concentrated in Europe,” Mnguni said. He added that interest income helped earnings, but called it “a very good result”.
Datatec was founded in South Africa in 1986 by technology entrepreneur Jens Montanana. He is still the company’s CEO 40 years later. The firm started out selling computer modems and networking equipment, long before the commercial Internet was widely used in South Africa.
Source: this article is based on reporting by MyBroadband. Image: MyBroadband. Written with the help of AI and published by the Tzaneen Voice Technology desk. See our Editorial Standards.
Werner Jacobs covers technology for Tzaneen Voice. Werner reports on mobile networks, data prices, internet access, smartphones, apps, AI, cybersecurity and South African tech companies. Each story explains what a new product, price change or policy means for ordinary users in South Africa.