Macquarie Telecom records another strong result
Written on the 27 February 2019 by Business News Australia
For the past nine financial halves data centre operator Macquarie Telecom (ASX: MAQ) has recorded growth in revenue and profit.
The half ending December 31 was buoyed by continued investments into the group's data centres, positioning the company well for the serious demand Australian businesses have for data storage.
Revenue was up 4 per cent to $119.6 million and EBITDA was up 13 per cent to $25.5 million.
Net profit after tax was also up 4 per cent to $8.3 million.
Chief executive David Tudehope says the strong results over the last few years have allowed the company to continue to grow.
"Sustained growth in profitability over the last nine halves has allowed Macquarie to consider opportunities to invest for future growth," he says.
"Hosting's growing profitability reflects the operating leverage from our investments in data centres and cloud computing."
Strong sales growth means the company now expects FY19 EBITDA to be in the range of $51 to $53 million.
Shares in Macquarie Telecom are down 1.1 per cent to $19.78 per share at 10.24am AEDT.
NEXTDC (ASX: NXT), Macquarie Telecom's main data centre rival on the ASX, also reported its 1H19 results.
Because of its takeover of Asia Pacific Data Centres (APDC) in November 2018 NEXTDC's results were down on 1H18.
The company reported a statutory loss of $3.1 million, down from $8.4 million in 1H18, but revenue was up 17 per cent to $90.8 million.
Chief executive officer and managing director Craig Scroggie says the investment in APDC will serve NEXTDC well.
"Today's results are in line with plan and are a testament to NEXTDC's strong fundamentals reflecting the inherent operating leverage of the business," says Scroggie.
"The first half was a record period for new investment in both the development of our next generation of world-class Tier IV data centres and our innovative connectivity service offerings."
Shares in NEXTDC are down 4.52 per cent to $6.76 per share at 10.28am AEDT.
Business News Australia
Author: Business News Australia