NextDC bolsters revenue by $37M
- 31 August, 2018 11:30
Craig Scroggie (NextDC)
NextDC has closed the 2018 financial year with a $37 million increase in revenue, posting $161.5 million for the year ended 30 June.
The financials represent a better than expected result, as the company had published a guidance of between $152-158 million of revenue for the year.
“We’re very pleased to report today’s results, with the company achieving FY18 revenue and EBITDA above the top end of its upgraded guidance range," NextDC CEO Craig Scroggie told shareholders.
"These results demonstrate NextDC's continued strong growth and when combined with pro forma liquidity of more than $1 billion, the company is extremely well placed to continue taking advantage of exciting growth opportunities.”
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) was $62.6 million, a $13.6 million increase from the previous corresponding period.
The data centre provider explained that underlying EBITDA excludes distribution income of $3.2 million from NEXTDC’s 29.2 per cent investment in Asia Pacific Data Centre Group as well as $1.8 million of costs related to the current Asia Pacific Data Centre Group wind up process.
As previously reported, the publicly-listed company called a special shareholder meeting over concerns about the $100 million debt facility 360 Capital Group (ASX:TGP) was seeking on behalf of Asia Pacific Data Centres (APDC) from Bankwest and National Australian Bank (NAB) in December 2017.
The reason for the meeting was to propose the winding up of the APDC Trust, which means realising its assets and distributing the net cash proceeds in order of priority to all members.
“We continue to experience strong demand for NextDC's premium data centre services, with the company experiencing not only strong growth in contracted utilisation, but also adding a record number of more than 2,300 interconnections during FY18," Scroggie added.
"Furthermore, with NEXTDC currently in advanced negotiations in relation to further large customer opportunities, we expect to carry this strong momentum into FY19."
With new accounting standards being introduced from the 2019 financial year on, revenue for FY19 is expected to be between $183-188 million and underlying EBITDA $83-87 million.