Story image

Soaring revenue sees NextDC record first full year net profit

23 Aug 16

NextDC has racked up a 52% year on year increase in revenue, with EBITDA up a whopping 247% to AU$27.2 million, recording its first full year statutory net profit.

The Australian data center-as-a-service provider recorded its first profit, of $1.8 million, on revenue of $92.8 million, with data center services revenue accounting for $89.3 million of revenue.

Craig Scroggie, NextDC chief executive officer, dubbed the first full year statutory net profit 'a significant achievement for a young company with substantial capital investments'.

Scroggie says NextDC is continuing to experience strong demand at its existing facilities.

“The value of our national data center network to the regional IT industry continues to grow as we bring new connectivity options to our expanding customer and partner ecosystem,” he says.

“NextDC continues to experience strong growth in the key metrics of revenue and contracted utilisation."

Contracted utilisation was up 20%, or 4.4MW, to 26.1MW, with interconnection up 58% to 4575. Customer numbers sat at 647 up 35% from 478 a year earlier.

NextDC is currently developing two new data centers which will add a combined 31MW of IT load capacity to its national network.

The 3000m2 Brisbane facility, B2, is expected to be completed towards the end of the FY17 and will have an initial capacity of 1.5MW, and a total IT capacity of 6.0MW.

The 10,000m2 M2 Melbourne facility which will be located at Tulllamarine, will have a total capacity of 25.0MW, with an initail capacity of 2MW available. It is also expected to be completed towards the end of this financial year.

The two new facilities are expected to require capital expenditure of between $120 million and $140 million, with NextDC also budgeting a further $80 million to $100 million for capital expenditure for its existing facilities.

The company says it has seen annualised revenue per square meter climb in FY16, from $7991 per square metre for the second half of FY16, to $8472 per square metre in 2H16, something it attributed to the deployment of large, high density, ecosystem-enhancing deals.

Annualised revenue per MW decreased slightly, from $4.26 per MW in 2H15 to $3.98 per MW in 2H16 as billing commenced for large contracts won in FY16 and they began to increase their power usage.

NextDC says it expects the per MW revenue to decrease further in the first half of this financial year as its largest leading corporation contract’s power usage ramps up.

Looking forward, NextDC says it expects revenues in FY17 to top the $100 million mark, with an expected range of $115 million to $125 million, with EBITDA in the range of $46 million to $50 million.

Earlier this month the company announced it had entered into a $100 million senior secured debt facility with National Australia Bank as it geared up for the increasing growth. The new facility replaced NextDC's undrawn $50 million senior secured debt facility, providing extra funding and financing flexibility.

Hillstone CTO's 2019 security predictions
Hillstone Networks CTO Tim Liu shares what key developments could be expected in the areas of security compliance, cloud, security, AI and IoT.
Can it be trusted? Huawei’s founder speaks out
Ren Zhengfei spoke candidly in a recent media roundtable about security, 5G, his daughter’s detainment, the USA, and the West’s perception of Huawei.
Oracle Java Card update boosts security for IoT devices
"Java Card 3.1 is very significant to the Internet of Things, bringing interoperability, security and flexibility to a fast-growing market currently lacking high-security and flexible edge security solutions."
How SMBs can use data to drive business outcomes
With the right technology, companies can capture consumer, sales, and expense data, and use it to evaluate and construct future plans.
Survey shows that IoT is RoI across Asia Pacific
A recent Frost & Sullivan survey across Australia, Hong Kong and Singapore shows that IoT deployment improves business metrics by around 12%.
IDC: Aussie spending on IT Services to hit $23.5B by 2023
the project-oriented market which is predicted to achieve the highest CAGR through to 2023; though no market is expected to decline
Sophos hires ex-McAfee SVP Gavin Struther
After 16 years as the APAC senior vice president and president for McAfee, Struthers is now heading the APJ arm of Sophos.
Security platform provider Deep Instinct expands local presence
The company has made two A/NZ specific leadership hires and formed several partnerships with organisations in the region.