South African tech giant seals R52 million deal

iOCO has reported another set of strong results as the company’s turnaround takes effect, with cost-cutting measures paying off in the form of a nearly 46% increase in profit.

To keep its growth momentum going, iOCO also announced the acquisition of the MySky Group of Companies for R52 million.

iOCO, formerly known as EOH, is one of Africa’s largest end-to-end technology solutions providers.

The company released its interim results for the six months through January 2026 on Wednesday, 18 March, which revealed an improved performance for the tech giant.

It reported revenue growth of 3.54% to R2.83 billion, and a profit of R179.76 million, marking a 45.58% increase from its 2025 financial year.

The company explained that this marked the first period of organic revenue growth for the group in several years.

iOCO’s earnings per share and headline earnings per share were up 47.37% to 28 cents.

While the company reported a decrease in its gross margins to 28%, it noted that its operating and EBITDA margins have grown to 9% and 11%, respectively, up from 8% and 9%.

This, iOCO said, reflects the company’s improved operating leverage and efficiencies, as well as the securing of market share and retention of customers through competing effectively on price. 

“This strategic trade-off strengthens our long-term revenue base and positions the group for sustainable growth,” it said.

iOCO’s impressive profit growth is attributed to a 9.2% reduction in its operating expenses and a 34.5% decrease in net finance costs.

Looking forward, the company expects to keep this momentum going, with a focus on deepening its revenue base and capitalising on its market share growth.

“Our strategy is growth-focused with a view to continue expanding our market and region reach, as well as our key business areas,” it said.

These areas include managed services, operational technology, digital transformation, global cloud solutions, cybersecurity advisory and infrastructure solutions.

“With a strengthened operating platform, a clear strategic road map and an increasingly competitive market position, the group is well-positioned to maintain momentum through the second half of the year,” iOCO said. 

“We remain confident in our ability to deliver sustainable growth and long-term value for shareholders.”

As part of its future growth, iOCO also announced the acquisition of the MySky Group of Companies, a provider of enterprise networking and managed infrastructure services, for an initial consideration of R52 million.

The company said this acquisition is expected to broaden iOCO’s enterprise client base, strengthen its connectivity and infrastructure capabilities and add recurring revenue to the group.

Founded in South Africa, MySky is known for delivering enterprise connectivity and infrastructure solutions to businesses across the country.

“Partnering with iOCO marks an exciting next phase for the business,” the founders said. “Being part of a diverse and exciting company such as IOCO allows us to scale further while continuing to deliver high-quality services to our customers.”

Looking ahead, iOCO expects to continue building on the momentum achieved in the first half of the year and has revised its guidance upward.

“With a stronger operating platform, a clear roadmap and a competitive market position, we are confident in delivering sustainable growth and long-term value,” iOCO CEO Rhys Summerton said.