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Acquisitions and restructuring costs leave Megaport with $21 million loss

Acquisitions and restructuring costs leave Megaport with $21 million loss

Costs impact Megaport's bottom line

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Megaport CEO, Denver Maddux

Megaport CEO, Denver Maddux

Megaport (ASX:MP1) has been left with a $21.3 million net loss (NPAT) for the financial year ending June thanks to costs stemming from its acquisition earlier this month of network services provider, OM-NIX Group AD (OM-NIX), company restructures, and listing on the Australian Securities Exchange (ASX).

The Australian interconnection provider, founded by Australian tech entrepreneur, Bevan Slattery, in 2013, listed on the ASX late last year, raising $25 million following its initial public offering (IPO).

Despite the multimillion dollar loss recorded in its first full-year result as a publicly-listed company, Megaport reported a $2.68 million revenue for the period, up by 80 per cent from the beginning of the financial year, with much of the additional revenue coming from its Asia-Pacific business units.

Megaport also reported a 127 per cent increase in its number of ports, to 736 in 102 locations globally. The company also signed several strategic partnerships during the year, with datacentre operators such as CyrusOne and EdgeConnex.

“Fiscal Year 2016 was a tremendous year for Megaport,” the company’s CEO, Denver Maddux, told investors.

“We aggressively expanded into new regions globally in a very short time period. Megaport is now live in Asia-Pacific, North America, and Europe. At the beginning of the fiscal year, Megaport was deployed in 36 locations. As of today, we are now in 132 locations,” he added.

“This represents fast execution on our plan, both organically and through two key acquisitions in Europe, OM-NIX and PEERING GmbH, providing us with extraordinary reach.”

At the time of publication, Megaport's shares were trading at $2.33.

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