NEXTDC SETS SIGHTS ON PROFIT AS INTERIM LOSS NARROWS
Written on the 26 February 2015 by Karen Rickert
NEXTDC Limited (ASX:NXT) is another step closer to jumping into the black, with a bumper year bolstering its latest half-year results.
The communications company recorded a statutory net loss of $5.8 million, compared to a $7.3 million net loss in the first half of FY14.
A 164 per cent lift in new sales from the company's data centres produced its first period of positive earnings before interest tax depreciation and amortisation (EBITDA), as well as operating cash flow.
Data centre revenue was also up 134 per cent to $26.7 million, in comparison to $11.4 million a year earlier.
As a result, EBITDA was $3 million as opposed to a $3.4 million loss in the previous corresponding period. Operating cash flow was $2.2 million, compared to $3.9 million in outflow.
NEXTDC CEO Craig Scroggie says the positive results represent a pivotal period for the company.
"We are starting to see the benefits of the inherent leverage of the company's scalable infrastructure start to flow through to earnings and operating cash flows," Scroggie says.
"We are pleased with the EBITDA contributions that M1 Melbourne, S1 Sydney and B1 Brisbane now make to the group.
"The strong EBITDA margins being achieved at each site are only possible through the efficiency and scale of our operations and the hard work of our great team."
NEXTDC's Sydney facility secured a major international contract in during the December half, rumoured to be online TV streaming service Netflix.
With data centres also located in Perth and Canberra, Scroggie says the company is poised to deliver strong performance for the full year.
"We are very proud of the achievements in the first half and equally excited by the attractive growth opportunities that are inherent in the company's scalable infrastructure," he says.
"We expect to build on the first-half results and deliver continued solid revenue growth, positive EBITDA and operating cash flows in the second half."
NEXTDC has forecast data centre revenue to double in FY15 compared to the previous period, rising to between $55 million and $60 million.
Full-year EBITDA is expected to be between $6 million and $8 million, compared to a $16.1 million loss in 2014.