MEGAPORT SHARES RISE FOLLOWING STRONG QUARTERLY RESULTS

Written on the 28 July 2017 by David Simmons

MEGAPORT SHARES RISE FOLLOWING STRONG QUARTERLY RESULTS

MEGAPORT Limited (ASX: MP1) has seen its share price rise by almost two per cent following the announcement of strong results for the June 2017 quarter.

The group, who delivers internet connectivity solutions to businesses, saw their revenue for the June quarter increase by 18 per cent compared to the previous quarter to $3.47 million.

Monthly revenue for the June quarter was similarly strong for the Brisbane based company at $1.22 million, which is an increase of $217,000 or 22 per cent.

During June, Megaport added 15 new data centres to their growing stable of physical infrastructure, bringing the total number of data centres to 165.

The implementation of savings measures, including partnering with companies in the United States, saw the group save $2.5 million compared to the previous quarter's cash spend, which was a drop of 35 per cent.

Under the direction of CEO Vincent English (pictured), Megaport has undertaken a strategy of global expansion which includes a major partnership deal with US-based giant Oracle which will allow its customers to access its network across North America, Europe and Asia Pacific.

The group now boasts a market valuation of around $153 million and is quickly becoming a market leader in the cloud computing and data sector.

During the quarter, Megaport completed a successful round of capital raising, generating $27.8 million.

At the end of the quarter the company's cash position was $21.1 million.

These results are very promising for part-owner and tech entrepreneur Bevan Slattery (pictured) who also founded fibre-optic network company Superloop Ltd.

Following the quarterly report Megaport's shares rose by almost two per cent and at midday (AEST) were $2.24.

Business News Australia

 

 
Author: David Simmons

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