NextDC records loss as it transitions out of development phase
- 27 February, 2014 12:53
Datacentre operator, NextDC, experienced a $7.3m loss in the first half of fiscal 2014, down from a $4.7m profit in the previous corresponding period.
Datacentre revenues jumped $7.6m to $11.4m as the company gained revenue from four operating datacentres in Brisbane (B1), Melbourne (M1), Canberra (C1), and Sydney (S1).
B1 contributed positive facility earnings before interest, tax, depreciation and amortisation (EBITDA) at $2.2m, up from $1.1m in the first half of fiscal 2013. M1 broke even, recording $1.1m in the same period.
On February 24, NextDC launched its Perth P1 colocation. Building construction risk has been removed with no new datacentres under construction, ongoing data hall fit-outs aside.
Total revenue from ordinary activities spiked 495 per cent and was $28.8m.
“NextDC has recently been focused on the rapid development of its national network of carrier- and vendor-neutral datacentres,” chief executive officer (CEO), Craig Scroggie, said. “As the company begins to transition out of the development phase and leverages its… national network of datacentres, the operating leverage of the model will become more pronounced in the financial results.”
NextDC said that since June 30, 2013: annualised contracted recurring revenue increased $4.4m (14 per cent) to $35.1m; high-margin cross connects increased by 493 to 1006, representing four per cent of recurring revenue in December 2013; annualised unweight pipeline increased by $8m (seven per cent) to $127m.
It also signed a contract with Telstra to provide the telecommunication provider’s enterprise, government and business customers with access to its datacentres across the country.
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