NextDC records loss as it transitions out of development phase

Datacentre operator experiences loss amid datacentre revenue rise

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.

FILL IN THE SURVEY - AND YOU COULD BE A WINNER: ARN wants to hear from YOU. Tell us how you run a successful business and you could win an adrenaline-fuelled adventure of your choice. COMPLETE THE ARN SURVEY.

Tags datacentrefinancialsDCaaSdatacentre-as-a-serviceNextDC

More about Telstra Corporation

ARN Directory | Distributors relevant to this article

Comments

Comments are now closed

 

Latest News

01:23PM
Web Marketing Experts to add 115 new jobs
01:05PM
Eftpos launches online payment trial with Coles' supermarkets
12:54PM
Namecheap says accounts compromised in hacking incident
12:44PM
Sage Business Solutions names Enbu Consulting as A/NZ CRM partner
More News
08 Sep
ITIL Foundation (incl. Exam)
10 Sep
CPX 2014
10 Sep
IT Leaders Lunch
10 Sep
Drive greater returns from T&E with mobility - Sydney
View all events