NEXTDC smashes revenue guidance but profit dives
Written on the 31 August 2018 by David Simmons
Following a year of intense competition with main rival 360 Capital, NEXTDC (ASX: NXT) has come out smashing its earnings guidance.
The company reported revenue of $161.5 million for FY18, above its guidance of $152-158 million.
However, the group's profit dived from $44.9 million at the end of FY17 to $6.6 million in FY17.
Earnings were also slightly above the guidance range, reporting earnings of $62.6 million for FY18.
NEXTDC's CEO, Craig Scroggie, says he is pleased with the group's results.
"We're very pleased to report today's results, with the company achieving FY18 revenue and EBITDA above the top end of its upgraded guidance range," says Scroggie.
"These results demonstrate NEXTDC's continued strong growth and when combined with pro forma liquidity of more than $1 billion, the company is extremely well placed to continue taking advantage of exciting growth opportunities."
Scroggie says the company also experienced a boost in sales during the financial year.
"We continue to experience strong demand for NEXTDC's premium data centre services, with the company experiencing not only strong growth in contracted utilisation, but also adding a record number of more than 2,300 interconnections during FY18," says Scroggie.
"We expect to carry this strong momentum into FY19."
The year was one of serious expansion for NEXTDC, with new facilities in Brisbane and Melbourne opened for customer access and a second Sydney data centre under construction and on track to open in the first half of FY19.
New sites in Melbourne, Sydney, and Perth have all been announced, with development of the second Perth site set to commence immediately.
The company anticipates FY19 to be even bigger, predicating revenue to land between $194-200 million, and earnings to land between $75-80 million.
In April 2018, the company's feud with Asia Pacific Data Centres (APDC) and 360 Capital came to a head.
APDC initiated legal proceedings against NEXTDC in relation to a dispute over APDC's claimed "ongoing access rights" at three of NEXTDC's data centres.
The three data centres in question are based in Sydney, Melbourne and Perth.
NEXTDC said it intends to defend APDC's latest claims.
Business News Australia
Author: David Simmons