Megaport sees jumps in revenue and overall loss for FY19

Revenue increases 78% to AU$35 million as net loss widens from AU$24.5 million to AU$33.6 million.
Written by Chris Duckett, Contributor

Australian interconnection services provider Megaport has seen its revenue increase by 78% to AU$35 million for the full year ending June 30, however at the same time, its net loss widened by 37% from AU$24.5 million last year to AU$33.6 million.

Once network and operating costs were taken out of its revenue number, Megaport reported normalised earnings before interest tax depreciation and amortisation (EBITDA) of minus AU$24.7 million. For the year prior the company reported normalised EBITDA of minus AU$22.1 million. The company touted this as an improvement with the EBITDA loss representing 78% of revenue compared to 112% last year.

Looking at the revenue composition, Megaport now gets AU$3.6 million each month in recurring revenue, an 82% increase on last year. 

By region, North America more than doubled its contribution from AU$5.4 million to AU$13.6 million, APAC moved from AU$8.4 million to AU$13.3 million, and Europe increased from AU$6 million to AU$8.2 million.

Additional employees saw employee costs move from AU$19.6 million to AU$26 million for the full year.

"Expanding our presence in Europe and other key areas in Asia Pacific, the US, and Canada has enabled Megaport to reach a milestone of 20 countries, and 528 enabled locations including 300 installed data centres," CEO Vincent English said.

"This accelerated growth and reach empowers the company to continue unlocking major use cases for cloud connectivity and on-demand networking for customers across the globe."

For its third quarter, Megaport revealed APAC was the only geography making a positive EBITDA contribution, and it flowed through for the full year.

APAC had a net profit of AU$1.4 million for the full year, while North America experienced a net loss of AU$10.9 million and Europe added a further net loss of AU$3.89 million.

Megaport announced its fourth quarter results last month.

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