Mac Telecom sticks more cash into hosting
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.