Marked non-price sensitive as it won't be material - clear negative and highlights the issue of being a reseller. Feel this would be a positive for DDR given they have more of a focus on SME.

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Australia’s leading IT services and solutions provider Data#3 Limited (ASX:DTL) wishes to advise that Microsoft has announced changes to its partner incentive program, as follows: • The changes will reduce the incentives earned by Data#3 on its Microsoft Enterprise agreements, effective 1 Jan 2025 • Microsoft will increase its focus on Small, Medium and Corporate (“SMC”) initiatives • Microsoft is also increasing incentives for its Copilot, Security, Azure Migrations and Cloud Solutions Provider (CSP) programs

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In isolation, if the full effect of the changes in Microsoft Enterprise Channel Incentives had applied throughout all of FY24, that effect would have reduced FY24 Gross Profit by about 3%.

However, this is not a forecast on the future impact of these changes as the effect in future years will depend on various other factors. The changes do not influence Data# 3’s Infrastructure Solutions, however they will provide the opportunity to increase revenue and improve profitability in Services.

There is no change to the FY25 H1 guidance provided at the Data# 3 AGM in October of $31 to $33 million of pretax profit, and the FY25 financial impact of the incentive changes is expected to be immaterial. With other areas of the business growing, Data# 3 still currently expects to achieve sustainable earnings growth for the full 2025 financial year.

Nice profit upgrade though not sure its the highest quality if most of it was driven by increased interest income.

05zgz1mbcvzct7.pdf (asx.com.au)

Looks like some index buying incoming.

BRISBANE, Tuesday 17 January 2023: Australia’s leading IT services and solutions provider, Data# 3 Limited (ASX: DTL) announces that, subject to finalising the interim accounts and audit review, its consolidated net profit before tax for the first half of FY23 is expected to be near the top end of the $21 million to $25 million guidance range provided at the AGM in October 2022.