TechnologyOne (ASX:TNE) reports 48% profit hike, upgrades interim payout

Company News

by Michael Luu

Enterprise software developer TechnologyOne (ASX:TNE)’s earnings soared 48 per cent to $28.2 million in the first half of the company’s fiscal year.

This marked the 12th consecutive first half that the company has racked up record profit. The $2.9 billion IT services provider has reported an increase of 5 per cent in gross sales to $144 million.

TechnologyOne has linked the upward trajectory to the booming demand for the company’s software-as-a-service (SaaS) products for enterprise data security. TNE’s number of high-profile enterprise customers signing up for SaaS solutions surged 21 per cent to 576.

The optimistic data has motivated the company to upgrade its interim dividend by 0.35 cents or over 10 per cent to $3.82. The payout is scheduled to be processed on June 18.

Technology One is currently providing digitisation solutions to government-level clients, such as the Australian Department of Agriculture, Water and the Environment.

The company also recently sealed a deal to collaborate with the New Zealand Ministry of Business, Innovation and Employment to assist in the implementation of SaaS technology in the operations of government organisations.

Shares in TechnologyOne (ASX:TNE) are trading 0.1 per cent higher at 9.00