NEXTDC HALVES LOSS WITH NEW CONTRACTS
Written on the 26 August 2015
NEXTDC Limited (ASX:NXT) has narrowed its full-year loss to $10.3 million, as the technology company gears up for a bumper year of earnings growth.
The result is an improvement on the previous year's loss of $22.9 million, following a host of new contracts and partnerships announced this past year.
All five of the company's data centres across Australia performed strongly, with revenue up 85 per cent from the previous year to $60.9 million.
Earnings before interest tax depreciation and amortisation (EBITDA) achieved its first positive full year result of $8 million, up from a loss of $10 million in FY14.
NEXTDC secured a major international customer at its Sydney facility late last year, as well as a leading corporation in June and a $35 million Federal Government contract earlier this month.
The company also benefited from a partnership with CenturyLink in April, to provide its client base with access to the US communications company's full suite of services.
NEXTDC will sign up to the Project Plus engineering program to meet new customer demand without the need for land or development. National capacity is set to expand from 35 megawatts to 42 megawatts under the agreement.
NEXTDC has forecast revenue of between $85 million and $90 million in FY16, which is expected to be fuelled by growth in its national ecosystem of clients.
EBITDA has been forecast to climb up to 250 per cent from the previous financial year to be in the range of $25 million to $28 million.
The company managed to upgrade its secured debt facility with NAB from $20 million to $50 million, which remains undrawn. Combined with cash and term deposits of $52.9 million, it remains well-placed to meet planned capital expenditure across data centres.
The opportunity to develop new data centres in Brisbane and Melbourne will be explored, depending on consumer demand and stability of the market.