MEGAPORT QUADRUPLES REVENUE AND INVESTS IN EXPANSION
Written on the 21 February 2017 by Business News Australia
MEGAPORT (ASX: MP1) increased revenue 345 per cent to $4.46 million in the six months to 31 December 2016, the company reported today in its half year results, but it is still trading at a loss.
The Brisbane-based company has increased its number of ports from 504 to 1,479 in December 2016 compared to the previous corresponding period; upped its total services from 940 to 2,768; and grew the number of data centres it works with from 46 to 141.
Megaport acquired Ecix and Omnix in July 2016 to quickly expand across Europe and is deploying technology to deploy in the United States.
"Compared to the first half of last year, we have seen a significant uptake in direct network costs and that is because we are expanding the network from 71 locations to 141. We doubled the network, and that is reflected in the costs," says English.
English says with the bulk of the core network complete, Megaport's focus in 2017 will be monetising that network. The company's growth is connected to the growing demand for connection to the 'cloud'.
"We have witnessed first-hand the effects of increased cloud adoption as evidenced by the dramatic uptick in our virtual cross connection (VXC) count," says English.
"The addition of several new cloud provider onramps to our software defined networking (SDN) is highly driven by the growing adoption of public cloud services and the demand cloud service providers see for better connectivity to their public cloud offerings."
English says partnering and integrating with cloud service providers to extend the reach of their services creates a powerful market relationship that makes it easier to get more customers connected.
Megaport is finished the today's trading down 3.51 per cent at $2.20 per share.
Author: Business News Australia