NEXTDC HALVES LOSS WITH NEW CONTRACTS

Written on the 26 August 2015

NEXTDC HALVES LOSS WITH NEW CONTRACTS

NEXTDC Limited (ASX:NXT) has narrowed its full-year loss to $10.3 million, as the technology company gears up for a bumper year of earnings growth.

The result is an improvement on the previous year's loss of $22.9 million, following a host of new contracts and partnerships announced this past year.

All five of the company's data centres across Australia performed strongly, with revenue up 85 per cent from the previous year to $60.9 million.

Earnings before interest tax depreciation and amortisation (EBITDA) achieved its first positive full year result of $8 million, up from a loss of $10 million in FY14.

NEXTDC secured a major international customer at its Sydney facility late last year, as well as a leading corporation in June and a $35 million Federal Government contract earlier this month.

The company also benefited from a partnership with CenturyLink in April, to provide its client base with access to the US communications company's full suite of services.

NEXTDC will sign up to the Project Plus engineering program to meet new customer demand without the need for land or development. National capacity is set to expand from 35 megawatts to 42 megawatts under the agreement.

NEXTDC has forecast revenue of between $85 million and $90 million in FY16, which is expected to be fuelled by growth in its national ecosystem of clients.

EBITDA has been forecast to climb up to 250 per cent from the previous financial year to be in the range of $25 million to $28 million.

The company managed to upgrade its secured debt facility with NAB from $20 million to $50 million, which remains undrawn. Combined with cash and term deposits of $52.9 million, it remains well-placed to meet planned capital expenditure across data centres.

The opportunity to develop new data centres in Brisbane and Melbourne will be explored, depending on consumer demand and stability of the market.

 


Latest News

SPOTLESS REJECTS DOWNER'S 'HOSTILE' $1.2B BID AS IT PROMISES A STRATEGY RESET

CLEANING and catering services company Spotless has rejected a $1.26 billion takeover bid from mining services firm D...

EXCLUSIVE INTERVIEW: MEGAPORT CEO VINCENT ENGLISH ON GLOBAL EXPANSION AND HOW TO SCALE UP A BUSINESS

THE RAPID expansion of Megaport (ASX: MP1) continues with the Brisbane-based company announcing a major partnership d...

BRISBANE ENTREPRENEUR BREAKS BARRIERS IN ECO-BUSINESS

TRACEY Bailey believes that if every person understood the true social and environmental cost of every product the...

DOMINO'S PIZZA EMPLOYEES OFFERED A SLICE OF THE PIE

DOMINO'S Pizza (ASX: DMP) has launched an employee share acquisition plan which will give its 26,000 staff the...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter