NextDC beats forecasts as customer base, interconnections grow

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NextDC beats forecasts as customer base, interconnections grow

NextDC has beaten its revenue and earnings forecast for the 2018 financial year on the back of a growing customer base and interconnections.

The data centre provider posted $161.5 million in revenue, up 31 percent from last year’s $123.6 million, beating its forecast of between $152 million to $158 million.

Underlying EBITDA was $62.6 million, up 28 percent from $49 million, beating the guidance range of $58 to $62 million.

Net profit after tax, however, was down 71 percent to $6.6 million, compared to last year’s $23 million, which was bolstered by $10.2 million of income tax benefit stemming from the recognition of unused historical tax losses. 

NextDC said it added 2300 interconnections to reach 8671, and its customer base grew 26 percent to 972 during the period. Contracted power utilisation is also up 28 percent to 40.2 megawatts, compared to 2017’s 31.5 MW.

“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 chief executive Craig Scroggie said.

“These results demonstrate NextDC’s continued strong growth. The company is extremely well placed to continue taking advantage of exciting growth opportunities.”

During the period, NextDC’s B2 and M2 facilities in Brisbane and Melbourne, respectively, opened for customer access, while construction on its S2 and P1 facilities in Sydney and Perth are underway.

Three new sites - S3 in Sydney, M3 in Melbourne and P2 in Perth - were also announced, with design and development work for P2 to commence soon.

During the financial year NextDC also expanded its cloud offerings with Oracle Fast Connect and Google Cloud Platform via its AXON network, in addition to existing connections with AWS, Microsoft ExpressRoute, IBM Cloud, among others.

Last month, the company launched a direct connectivity to Google Cloud with two interconnects, saying it will provide customers with greater connectivity to the search giant’s cloud platform.

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