Mac Telecom sticks more cash into hosting

Summary:Macquarie Telecom Group says its preliminary full year results have come in above guidance after a major uptake of the telco's hosting facilities — success which the company has said it will foster with an additional $15 million investment.

Macquarie Telecom Group says its preliminary full year results have come in above guidance after a major uptake of the telco's hosting facilities — success which the company has said it will foster with an additional $15 million investment.

Macquarie Telecom says its earnings before interest, tax, depreciation and amortisation (EBITDA) for the 12 months to 30 June is expected to be between $28 million and $29 million.

The company had previously forecast EBITDA for the financial year of $26 million to $28 million.

"This result supports the strategic direction we have taken as we build momentum in our higher margin hosting business," Macquarie Telecom chief executive and co-founder David Tudehope said in a statement.

"Over the next fiscal year we intend to invest approximately an additional $15 million over our current capital expenditure run rate to expand our hosting capacity to support growth in this business."

Macquarie Telecom's hosting business added $20.5 million to the half-yearly report, released in February, and became a major contributor to the business.

"Hosting now contributes 37 per cent of business profitability," the company had said at the time.

Topics: Cloud, Enterprise 2.0

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A fresh recruit onto the tech journalism battlefield, Luke Hopewell is eager to see some action. After a tour of duty in the belly of the Telstra beast, he is keen to report big stories on the enterprise beat. Drawing on past experience in radio, print and magazine, he plans to ask all the tough questions you want answered.

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