Megaport’s (ASX:MP1) losses have retreated for the six months ending December 2017, to $13.3 million, representing a 3.27 per cent boost from the $13.8 million net loss the company reported for the same period the year prior.
At the same time, the interconnectivity provider’s revenue for the half-year period was $8.8 million, an increase of 98 per cent from the same period ended 31 December 2016.
During the half-year, Megaport invested $6 million cash into its network and ecosystem expansion. Of this amount, $3.6 million was invested in rolling out additional data centres globally, including setting up its Europe sites and adding additional sites in North America.
Meanwhile, $2.4 million was invested in the company’s software development and innovation including its recently-launched Megaport Cloud Router (MCR), among other items.
After direct network costs, the company reported a $2.1 million profit for the half-year period, compared to a loss after direct network costs of $831,000 in the same period ended 31 December 2016.
“The first half of fiscal year 2018 saw the company driving increased adoption of Megaport services which grew significantly while we continued to expand our network footprint into markets underserved by cloud connectivity,” Megaport CEO, Vincent English, said.
“Revenue grew…through increased port adoption as well as increased utilisation of services. This, in turn, has had a positive impact, resulting in a $2.1 million profit after direct network costs in this reporting period.”
Looking forward, English said Megaport will further deepen its integration with the hyperscalers to maximise ease-of-use while bringing more managed and network service providers into its ecosystem.
“In the second half of the year we will continue to work with our partners to accelerate service adoption and drive greater revenue,” he said.
In August last year, the interconnectivity provider reported a net loss after income tax of $29.9 million for the year – the company’s loss in the year prior came in at $21.3 million.
At the same time, the company’s revenue surged from $2.7 million for the financial year ending 2016, to $10.7 million for the year ending June, representing a 298 per cent year-on-year increase.
In June, Megaport raised $27.8 million in new capital, with the proceeds set to be used to fund the company’s North American and European network-related capital expenditures, ongoing operating costs and new product initiatives.