Megaport says APAC has turned corner as overall revenue and net loss grows

Revenue is growing 72 percent year on year, as net loss slips by almost a quarter.
Written by Chris Duckett, Contributor

By its own reporting standards, Megaport finally has a geography that is able to post some overall positive numbers, as the company claims its Asia-Pacific operations are producing positive earnings before interest, tax, depreciation, and amortisation (EBITDA).

For the half-year to December 31, the interconnection services provider reported revenue of AU$5.9 million against AU$3.7 million a year ago in APAC, and net profit of AU$0.4 million compared to a AU$1 million loss last year.

In North America, revenue increased to AU$5.4 million from AU$2.3 million, while net loss blew out to AU$5.5 million, a AU$0.9 million increase on the loss for H1 2017.

Across the Atlantic, Megaport reported an almost AU$1 million revenue increase to AU$3.77 million to December 31, while net loss grew by AU$0.5 million to AU$2.4 million.

Megaport's other category, which has no revenue, saw its net loss spike from AU$5.7 million last year to AU$9 million for the half year.

Overall, Megaport reported a 72 percent half-year revenue jump to AU$15.2 million, of which AU$2.7 million was from monthly recurring revenue, while EBITDA rose from AU$11.2 million to AU$12.9 million and net loss was posted at AU$16.6 million.

To December 30, the company has accumulated AU$92.3 million in losses, and has issued AU$168 million in capital.

Megaport said its results were solid as it had made significant investments in sales and expanded its footprint, which were "at the early stages" of making a positive impact to revenue.

The company said it is now installed in 245 data centres, has 115 cloud onramps, and has 1,277 customers to which it provides 8,735 services across 3,344 ports.

At the same time of the results announcement on Tuesday, the company announced that Equinix co-founder and former Digg CEO Jay Adelson is joining its board.

"Jay is an industry luminary with a tremendous track record of seeing around corners, and his appointment highlights our global focus as a company," chair Bevan Slattery said.

"His passion for entrepreneurship and technology as well as his experience at building industry-changing platforms will be of significant benefit to the whole Megaport team as we continue to lead innovation within the cloud interconnection space."

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