NEXTDC TURNS RED INTO BLACK

Written on the 23 August 2016 by Laura Daquino

NEXTDC TURNS RED INTO BLACK NEXTDC (ASX: NXT) has made its first full year profit and lifted its revenue 52 per cent.

The Brisbane data centre company exceeded its top-end guidance by almost $3 million to take a revenue of $92.8 million.

It also turned around a statutory net loss of $10.3 million incurred in FY15 into a statutory net profit of $1.8 million.

CEO Craig Scroggie says the profit result is a 'significant achievement for a young company with substantial capital investments'.

"We continue to experience strong demand at our existing facilities. 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," he says.

"When evaluating new material opportunities, the company undertakes a robust and disciplined approach to contract pricing with shareholder returns the ultimate determinant. NEXTDC's business is long term in nature, with the bulk of capital expenditure invested upfront and cash flows underpinned by contracted recurring revenue."

NEXTDC had $191.4 million in cash and term deposits at June 30.

The company upsized its debt facility with National Australia Bank (ASX: NAB) from $50 million to $100 million on August 11, but the funds remain undrawn.

NEXTDC provided guidance for revenues in the range of $115 million to $122 million for FY17. It also expects to up earnings before interest, taxes, depreciation and amortisation from this year's $27.7 million to somewhere in the range of $46 million to $50 million.

NEXTDC opened at $3.82 before shooting to $4.03 upon its maiden profit result.


Author: Laura Daquino Connect via: Twitter LinkedIn

Latest News

MEGAPORT TARGETS GLOBAL EXPANSION WITH $27.8M CAPITAL RAISING

MEGAPORT Limited (ASX: MP1) will complete a $27.8 million capital raising to assist in expanding the group's plat...

SCA PROPERTY GROUP BUYS THIRD GOLD COAST SHOPPING CENTRE FOR $46 MILLION

SCA Property Group has acquired the Worongary Town Centre for $46.3 million, bringing the total number of Gold Coa...

DOWNER EDI GRABS MORE THAN 50 PER CENT STAKE IN HOSTILE TAKEOVER TARGET SPOTLESS

DOWNER EDI Limited (ASX: DOW) now holds more than 50 per cent of Spotless Group Holdings Limited's (ASX: SPO) sha...

ACCODEX AIMS TO RAISE $5 MILLION CAPITAL, AWARD FOR CEO A CHERRY ON TOP

ACCOUNTANT Chris Hooper has never been one to shy away from voicing his opinion when it comes to the state of his ...

Related News

DOWNER EDI GRABS MORE THAN 50 PER CENT STAKE IN HOSTILE TAKEOVER TARGET SPOTLESS

DOWNER EDI Limited (ASX: DOW) now holds more than 50 per cent of Spotless Group Holdings Limited's (ASX: SPO) sha...

STRUGGLING TEN NETWORK IS 'CASH POSITIVE' AND CAN BE SAVED, ADMINISTRATOR SAYS

THE ADMINISTRATORS of the Ten Network say the struggling broadcaster has cash to continue operating and have also ind...

METCASH NET PROFIT FALLS 20 PER CENT, ANNOUNCES CEO WILL STEP DOWN IN 2018

FOOD and grocery giant Metcash has announced its full year net profit has fallen more than 20 per cent and its CEO Ia...

SHARE PRICE PLUNGE FOR RETIREMENT VILLAGE OPERATOR AHEAD OF FOUR CORNERS INVESTIGATION

A RETIREMENT village operator which has been accused of charging excessive fees through complex contracts has respond...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter