MEGAPORT TAKES A HIT TO MAKE GREATER GAINS
Written on the 29 February 2016 by Laura Daquino
LAUNCH costs have driven Megaport (ASX: MP1) to a $9.9 million net loss for the half year to December, but the Brisbane company's cash in the bank proves it's more than ripe for expansion.
"The loss is definitely in line with an expanding company that has to put together a service platform before it can really start bringing on customers and making money."
Even still, Megaport performed well in its Asia Pacific business. Megaport operates in 54 data centres across thirteen markets in Australia, New Zealand, Singapore, Hong Kong and United States.
"It's a really, really strong outcome for us as a young company and they are very active, young and engaged, so it's a perfect cultural fit.
"Our product is getting a lot of attention from data centre operators who see it as a great platform to have in their facilities because they don't have an elastic interconnection fabric that allows customers to get instant access to the cloud. Customers now want access to the cloud at a minimum."