NEXTDC posts record half year financials as multi-million dollar investment kicks off
- 24 February, 2017 11:15
Craig Scroggie - NEXTDC CEO
Data centre operator, NEXTDC (ASX:NXT), has posted its highest six month earnings as it looks to more than double its total capacity in coming years.
The company plans to spend between $260 and $340 million this financial year, including $80 to $100 million on existing facilities and $180 to $240 million on new data centres.
“We are very pleased to report record revenue, EBITDA and operating cash flow. This outstanding performance reflects NEXTDC’s inherent operating leverage, which combined with a robust balance sheet, puts the business in a strong position to continue to accelerate growth,” NEXTDC CEO, Craig Scroggie, said.
The company reported revenue of $58.7 million, a 39 per cent increase on the same period last year. NEXTDC’s earnings before interest, tax, depreciation, and amortisation (EBITDA) were up 110 per cent 2016 half year figures, hitting $23.9 million.
As a result, profit before tax for the six month period was $8 million, up from $600,000 the year prior. Additionally, operating cash flow stood at $25.4 million following a capital raising in September 2016.
The company said it plans to double its total data centre footprint in the next few years, beginning with investments in Brisbane, Melbourne and Sydney. Secondary data centres are planned for each city and planned capacity for the current Sydney facility is being upgraded from 14 to 15 megawatts.
It also added that additional space is being added to the current Sydney and Melbourne data centres to support customer requirements. The company said its second sites in Brisbane and Melbourne were on track to achieve practical completion by June 2018.
The site for the second Sydney facility is under contract with development approvals in progress and the company said practical completion is expected towards the end of this year.
NEXTDC reported a profit for the first time in the 2016 financial year, and in the second half of 2016, detailed its plans to double its total data centre capacity in the next few years.
In November 2016, the company switched on its first direct connect facility to Amazon Web Services (AWS), adding the hyperscale cloud provider to its list of high-speed connections which includes Microsoft Azure and IBM SoftLayer.
The number of inter connections to public cloud providers was up 42 per cent to 5472 as of 31 December 2016. Its total customer base rose 23 per cent to 699 on the same period in 2015.
“[The 2017 financial year] is the biggest year in NEXTDC’s history, with planned capital investments of more than $250 million,” Scroggie said. “We are developing three new world class hyperscale data centres to take advantage of the unprecedented demand for cloud and enterprise colocation services.”
At the time of publication, the company's shares were trading at $3.56.