By Ron Coates, 6 June 2001 16:01
NEWS IT services group Logica today told analysts that it will see booming turnover and profits for the year, despite a slowdown in the explosive growth of text messaging. Andrew Given, Logica CFO, said: "Our mobile networks business remains powerfully positioned globally and is by far the fastest-growing business organically. However, we are not seeing the stellar growth rates of recent past." Logica's sales from mobile SMS almost doubled last year and are believed to make up 20 per cent of its revenue. In February, the company reported half-year turnover of £505m and pre-tax profits of £64.8m. Some analysts have estimated that profits will hit £150m by the year-end of 30 June. A Logica spokesman said: "Growth in some areas has been over 100 per cent. Obviously, you can't expect that to continue. But, as the industry moves to GPRS and 3G, we will be well placed to take advantage of it." About three months ago, Logica estimated that its systems carried about 60 per cent of worldwide SMS traffic - or 1,000 messages per second. As of today, it is leading in the BT Global Challenge around the world yacht race, but other yachts have significantly narrowed the lead.
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