NextDC makes first-ever profit

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NextDC makes first-ever profit

NextDC has posted a net profit after tax of $1.8 million, the first time the data centre company has reported a profit in its six-year history.

The NPAT result was a turnaround from a $10.3 million loss last year. NextDC's revenue was up 52 percent to $92.8 million in the financial year ending 30 June 2016. EBITDA was up 247 percent to hit $27.7 million

Chief executive Craig Scroggie said the first net profit was a significant achievement for a company that made substantial capital investments.

"The value of our national data centre network to the regional IT industry continues to grow as we bring new connectivity options to our expanding customer and partner ecosystem," said Scroggie.

"When evaluating new material opportunities, the company undertakes a robust and disciplined approach to contract pricing with shareholder returns the ultimate determinant."

The co-location provider took the opportunity to update the market on the progress of its two new data centres in Brisbane (B2) and Melbourne (M2), each of which will be NextDC's second facility in the state capital.

NextDC has chosen the locations of the two facilities and commenced preliminary site work. The $75 million Brisbane data centre will be based in Fortitude Valley and provide an additional 6MW of capacity when completed. The $85 million Melbourne data centre will be located in Tullamarine and will house 25MW after completion.

Both facilities are expected to open towards the end of the second half of the 2017 financial year, and will cost between $120 million and $140 million to complete. NextDC has already invested an additional $80 million to $100 million in its existing data centres in 2016.

NextDC also has data centres in Sydney, Perth and Canberra along with the existing data centres in Brisbane and Melbourne.

The company's shares were trading at $3.90 at time of writing, up from $2.50 a year ago.

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