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NextDC upgrades earnings guidance

NextDC upgrades earnings guidance

Contracted utilisation increases from 1.2MW to 12.1MW in first four months of FY15

NextDC chief executive, Craig Scroggie.

NextDC chief executive, Craig Scroggie.

Datacentre operator, NextDC, has upgraded its earnings guidance for 2015 following significant growth in 2014 service revenue.

NextDC chief executive, Craig Scroggie, delivered the news at the annual general meeting.

Scroggie said datacentre services revenue across all five operating facilities grew 237 per cent to 30.4 million in FY14.

"Importantly, the majority of this revenue is recurring and underpinned by international and domestic customers and service provider partners that are forming long term relationships with NextDC," he said.

"In FY15 the company will introduce a number of exciting new products and services including our new ONEDC subscription-based datacentre intelligence platform that will further develop the richness of our ecosystem; FastStart online co-location ordering, and half and quarter-rack products, which together are ideal for SMEs or businesses trialling the benefits of colocation and considering the move to public or private Cloud computing solutions colocated with their own infrastructure."

Scroggie said the company's sales model focused on partnering with the key organisations that drive the growth of digital connectedness and public and private Cloud computing.

"The company's strategy of partnering increases the breadth and depth of NextDC's selling capacity and market reach into the enterprise customer base," he said.

"It also drives unique value to our customers through diverse ecosystem of service providers that makes NextDC a marketplace for the digital economy."

Scroggie said the company had continued its strong progress in the first four months of the 2015 financial year.

"Contracted utilisation has increased 1.2MW to 12.1MW at an average price of $5.4 million per MW, with annualised contracted recurring revenue increasing $6.5 million to $48.2 million," he said.

"Interconnection continues to increase at a rapid pace with 603 cross connects added in just over four months, reflecting an increase of 41 per cent and customer growth continues with 55 new customers joining NextDC over the same period, an increase of 18 per cent."

Scroggie also upgraded the company's earning guidance in his FY15 outlook.

"With our full year results for 2014, released in August, for the first time we issued earnings guidance for the 2015 financial year," he said.

"We are pleased to be able to modestly upgrade that guidance."

He said the company expected new sales between 2.4MW and 3.0MW, substantial growth in datacentre services revenue to between $51 million and $55 million and a positive EBITDA for the the first half of FY15 and FY15 overall.

During FY14, the company raised more than $160 million from diversified funding sources including equity holders, bond holders, base building development fees, and proceeds from the sale of the company's holding in Asia Pacific Data Centre.

At June 30, the company had more than $70 million in cash and term deposits with access to a further $20 million from an undrawn senior debt facility.

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Tags annual general meetingCraig ScroggieNEXTDC chief executive

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