NEXTDC TURNS RED INTO BLACK
Written on the 23 August 2016 by Laura Daquino
NEXTDC (ASX: NXT) has made its first full year profit and lifted its revenue 52 per cent.
The Brisbane data centre company exceeded its top-end guidance by almost $3 million to take a revenue of $92.8 million.
It also turned around a statutory net loss of $10.3 million incurred in FY15 into a statutory net profit of $1.8 million.
CEO Craig Scroggie says the profit result is a 'significant achievement for a young company with substantial capital investments'.
"We continue to experience strong demand at our existing facilities. The value of our national data centre network to the regional IT industry continues to grow as we bring new connectivity options to our expanding customer and partner ecosystem," he says.
"When evaluating new material opportunities, the company undertakes a robust and disciplined approach to contract pricing with shareholder returns the ultimate determinant. NEXTDC's business is long term in nature, with the bulk of capital expenditure invested upfront and cash flows underpinned by contracted recurring revenue."
NEXTDC had $191.4 million in cash and term deposits at June 30.
The company upsized its debt facility with National Australia Bank (ASX: NAB) from $50 million to $100 million on August 11, but the funds remain undrawn.
NEXTDC provided guidance for revenues in the range of $115 million to $122 million for FY17. It also expects to up earnings before interest, taxes, depreciation and amortisation from this year's $27.7 million to somewhere in the range of $46 million to $50 million.
NEXTDC opened at $3.82 before shooting to $4.03 upon its maiden profit result.