​NextDC reports all-round growth during 1H16 results

NextDC has reported that a 55 percent lift in datacentre services revenue pushed total revenue for the 1H16 up to AU$42.1 million, and EBITDA up by 279 percent to AU$11.4 million.

NextDC has highlighted that it experienced substantial growth during the first half of the 2016 financial year due to an increase in datacentre services.

The company highlighted revenue was up 51 percent to AU$42.1 million from the AU$28 million that was recording during the corresponding period last year, and earnings before interest, tax, depreciation, and amortisation (EBITDA) jumped 279 percent to AU$11.4 million. Meanwhile, the company's statutory net profit made a positive return of AU$0.6 million, compared to the net loss of AU$5.8 million in 1H15.

The results indicated that a majority of total revenue was from its datacentre services revenue, which increased by 55 percent during the six-month period to AU$41.3 million.

At the same time, total operating costs increased by 6.4 percent to AU$29.9 million. NextDC explained that the rise was predominately from direct costs that rose significantly due to the uptake of contracted customer capacity, and an increase in corporate overhead costs driven by specific project-related costs, an increase in staff numbers, and the provision of executive incentive costs.

NextDC CEO Craig Scroggie said the results are proof of the company's strong funding position that will allow it to pursue further growth opportunities, particularly following the market's support of its capital raising in the last few months of 2015.

In November, the company announced it was seeking to raise AU$120 million to fund the construction of two new datacentre facilities. Melbourne will receive a second datacentre, known as M2, and Brisbane will also receive a second datacentre, B2, but it will be less than half the size of M2. The datacentres will add up to 31MW of IT load capacity to NextDC's national network over time.

NextDC said it is now in "advanced discussions" in relation to short-listed sites for B2 and M2, and expects the capital investment in the new facilities will be between AU$20 million and AU$40 million, but believes more of the spend will fall into FY17.

During the half year, NextDC also inked a AU$1.79 million "critical and sensitive" three-year deal with the Australian government, and signed a five-year contract with the Australian Electoral Commission (AEC), with the AU$1.4 million deal including the relocation of the AEC's critical IT infrastructure.

Looking forward, the company believes as it secures additional client contracts in 2H16, that revenue and EBITDA will trend towards the top end of the guidance range of AU$85 million to AU$96 million and AU$25 million to AU$28 million respectively, and capital investment at existing sites will be between AU$100 million and AU$120 million

The company hinted it is currently in "advanced discussions in relation to further large customer opportunities".

"While there can be no assurances that these discussions will result in further large contract wins, it is the company's expectations that any such contract wins are likely to have the majority of their impact on NextDC's financial performance in FY17 and beyond," it said.

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