NEXTDC EKES OUT INTERIM PROFIT
Written on the 18 February 2016
THE expansion of its data centre network has helped NEXTDC (ASX:NXT) eke out a half-year profit.
The Brisbane-based business rebounded into the black with a net profit of $644,000 compared to a loss of $5.8 million in the first half of FY15.
Revenue was also up 51 per cent from the previous period to $42.1 million, while EBITDA increased 279 per cent to $11.4 million.
NEXTDC CEO Craig Scroggie (pictured) says the substantial growth in data centre services underpinned the strong interim results.
"NEXTDC has been going from strength to strength in the past six months, announcing new data centre builds on the back of our Brisbane and Melbourne facilities nearing capacity, and the market's support of our capital raising in the last few months of 2015," Scroggie says.
"This strong funding position allows us to pursue further growth supported by robust demand from new and existing customers."
NEXTDC maintains a strong cash position after completing a $120 million equity raising and $100 million Notes II offer.
Combined with an undrawn debt facility, the company has $275 million of capital available to invest in growing its capacity across the Australian data centre market.
Advanced discussions for new data centre sites in Brisbane and Melbourne are underway, with the investment expected to be between $20 million and $40 million in FY16.
NEXTDC expects earnings to be at the top end of the guidance range of $25 million to $28 million for the full year, off the back of several potential contract wins.