The interim results released by Altech today are a clear indication of the growth opportunities that still exist in the IT and multi-media services markets, according to consulting group Frost & Sullivan, which adds that the company has been able to take advantage of this environment by expanding into several African markets where cellular services are in high demand.
Altech increased its operating profit by 34% over the same period last year, with its telecommunications division contributing 80% of overall profits. The group also noted that it had made particularly good progress in Africa.
“The group has continued to produce the goods, with another great set of results,” says Frost & Sullivan analyst Lindsey McDonald. “It was particularly interesting to see the revenue attributed to the telecommunications division. This is another indication of the booming nature of this market.”
The company also noted in its results statement that Altech Stream East Africa is in the perfect position to take advantage of the capacity that will become available in the region once the submarine optical fibre cables are brought online next year.
“Altech has set out on a business expansion strategy into Africa that has placed it ahead of many of its competitors,” McDonald says. “The group has concluded several acquisitions in the year, including three subsidiaries of the Sameer ICT Group in Kenya. Altech’s major competitive advantage lies in its strong cash flow, making it possible for the group to support both horizontal and organic growth in the region.”
McDonald, however, warns that Altech should expect heightened competition in the markets in which it currently operates. Traditional mobile operators have earmarked IT and data services as areas for growth, and are likely to challenge Altech for market share.