Data Exchange Network (DXN) has seen its net losses after tax drop by 41 per cent for the latest half year, just months opening its delayed Sydney data centre.
The prefabricated modular data centre provider reported a loss of $6.1 million for the half year ending 31 December 2019.
Earnings before interest, taxes, depreciation and amortisation were also down by 17 per cent to $2.8 million but revenue increased by 90 per cent to $2.5 million, according to documents submitted to the Australian Securities Exchange (ASX).
Matthew Madden, chief executive officer of DXN, said the provider’s current focus is on its existing customer base.
“Whilst there are numerous opportunities and avenues to build this business in time, the team is very focused on delivering organic, contracted growth from our existing customer pipeline,” Madden said.
“Having joined the business in late August 2019, I’m very pleased to have the support of a very capable senior team who have been working very hard to deliver contracted customer growth across the business.
Looking forward, one part of DXN’s FY20 strategy includes using its channel partners to draw in attention to its Sydney-based DXN-SYD01 data centre, which opened in August 2019 after being delayed by six months.
“The Sydney data centre has now been completed and we expect our channel partners to ramp up delivery of colocation customers during the 2H20,” Madden said.
Another part of its future focus is the provider's modular Edge DC construction business, which is expected to bring in new contracts during the second half of the financial year.
“Having worked in the data centre industry for many years and having just returned from the PTC [Pacific Telecommunications Council] conference, it is clear that the vertically integrated, Edge focussed DC model will succeed as demand for computer power closer to population centres to reduce latency issues continues to build,” he said.
The release of its financial results follow news of DXN's deal with Business Communications Australasia and acquisition of TasmaNet's Data Centre 3.