NextDC clinches rare profit

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NextDC clinches rare profit

Data centre provider NextDC has reported its second profitable half in its six-year history.

The Brisbane-based co-location provider scraped in a net profit of $644,000 for the half-year ending 31 December, compared to a $5.8 million net loss in the same time last year.

Revenue was up 51 percent to $42.1 million after an additional 1.1MW of power was sold during the half.

NextDC has poured hundreds of millions into setting up its data centres over the years. The company has already spent $85 million on its Melbourne M1 centre, $66 million on Sydney S1, $34 million on Perth P1, $28 million on Brisbane's B1 and $7 million on Canberra C1.

During the latest financial report, NextDC chief executive Craig Scroggie reiterated that the company had completed a $120 million equity raising and raised a further $100 million from unsecured notes to develop the new new Brisbane B2 and Melbourne M2 data centre.

Scroggie hinted at more NextDC locations to open in the future, saying the company is undertaking due diligence for new sites.

“NextDC has been going from strength to strength in the past six months, announcing new data centre builds on the back of our Brisbane and Melbourne facilities nearing capacity, and the market’s support of our capital raising in the last few months of 2015,” said Scroggie.

“This strong funding position allows us to pursue further growth supported by robust demand from new and existing customers.”

Based on the latest performance, NextDC predicted revenue for the full 2016 financial year to be in the range of $85 million to $90 million, up from $70 million in 2015.

NextDC shares were trading at $2.50 by the end of Thursday 18 February.

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