Business is booming for ASX-listed, cloud-based data centre NextDC, which is spending $240 million this financial year opening new centres in Sydney, Melbourne and Brisbane.
The company announced its FY17 results yesterday, just beating its guidance on revenue at $123.6 million, a third higher than in FY16, with EBITDA (earnings before interest, tax, depreciation and amortisation) of $49 million — nearly double last year’s figure. Customer numbers rose 19% to 772.
Statutory net profit after tax was $23 million, up from $1.8 million in FY16. The figure includes $10.2 million of income tax benefit stemming from the recognition of unused historical tax losses.
NextDC is Australia’s leading independent data centre operator with a network of Tier III and Tier IV facilities, with a cloud centre marketplace hosting the country’s largest independent network of carriers, cloud and IT service providers.
CEO Craig Scroggie said the business is predicting underlying revenue to grow to up to $154 million this financial year and capital expenditure of up to $240 million.
“We are very pleased with our FY17 results. They demonstrate the company’s continued strong growth with significant increases in contracted utilisation, strengthening EBITDA and a more than doubling of operating cash flow,” he said.
The company currently has eight data centres in five cities Brisbane, Canberra, Melbourne, Perth and Sydney, with second centres in Brisbane and Melbourne are due to come online in the first half of FY18.
NextDC has upgraded a number of its sites and is also building its largest data centre to date in Sydney — an 8,000m2, 30MW project, funded by a $150 million capital raising.
Scroggie said the business was currently in “advanced negotiations” several large customers.
“Three new world-class hyperscale data centres are in development as we achieve industry leading certifications for design and construct standards, operational excellence and energy efficiency,” he said.
“NextDC’s ability to attract new investment and new business is creating incredible value for Australia’s digital economy, where cloud and colocation are playing an increasingly critical role.”
The company’s shares (NXT) jumped nearly 8% yesterday on the results announcement, closing at $4.58. Today the shares are down nearly 0.5% to $4.56.