Macquarie Telecom figures drop as it invests in datacentre and Cloud

Company states 33 per cent NPAT drop was a planned consequence of significant capital expenditure

ASX-listed Macquarie Telecom (ASX:MAQ), has taken a 33 per cent decrease in NPAT to $7.4 million for the first half of FY13. Revenue was also down 6.9 per cent to $105.7 million compared to the previous corresponding period.

The company said the change in NPAT was a planned consequence of a significant capital expenditure project during that period.

During the first half, Macquarie opened its Tier 3 datacentre - Intellicentre 2 in September and the undrawn working capital facility increased from $30 million to $50 million to support future growth opportunities.

Its Hosting business EBITDA reduced 9.3 per cent to $6.9 million on the previous corresponding period. Macquarie said it was impacted by the cost of additional staff to satisfy Federal Government demand and pricing pressure on managed hosting.

The telco business made $74.6 million in revenue and EBITDA of $15.7 million, down 9.6 per cent and 4.6 per cent, respectively.

During the six months to December, Macquarie invested $12.2 million into expanding its hosting capacity in Sydney and Canberra. In Sydney, the company is investing $7 million due to customer demand triggering the commission of a second megawatt of ICT load at Intellicentre 2, which will be completed in June.

In Canberra, it will be investing a further $14 million on capacity, networking, software and product development to deliver the Lead Agency Secure Internet Gateway program.

Macquarie Telecom chairman, Robert Kaye, stated the half-year result reflected a year of investment for future growth, expanding its datacentre footprint, growing its Canberra presence and enhancing its Cloud services offering.

Macquarie Telecom is placing EBITDA profit guidance for the full year between $38 million and $42 million.

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