NextDC improves first-half revenue and EBITDA while net loss widens

Data centre services revenue jumped by just over AU$11 million, while the company had a AU$32.6 million depreciation and amortisation expense.

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Image: NextDC

As a set of headline numbers, NextDC reported a decent set of numbers for its revenue and earnings before interest, tax, depreciation and amortisation (EBITDA).

For the first half to December 31, the data centre company reported a AU$11.3 million jump in revenue to AU$95.4 million, and EBITDA increased by AU$13.3 million, or AU$8.7 million in underlying terms, to AU$51 million.

However in the final wash, the company walked away with an increased net loss of nearly AU$5 million compared to AU$3 million posted for the first half of 2019. For the first half of 2020, NextDC increased its depreciation and amortisation by AU$10 million to AU$32.6 million, while its finance expenses line item grew by AU$1.3 million to AU$29.4 million. The company said in its results it was "well capitalised for growth", even as it cash on hand halved from AU$400 million to AU$197 million.

During the half, NextDC opened two new data halls in Sydney, with another pair planned to provide 22MW of additional capacity and take the total to 46MW. Sydney currently has 30MW of capacity built. With its new capacity, the company had its utilisation figures for installed capacity drop from 90% to 77%. Altogether across Australia, NextDC has 53.3MW of contracted utilisation.

"During the period NEXTDC invested approximately $228 million, on the development of S2, P2, as well as other expansion and improvement activities across our data centres," the company said in its results.

For the full year, the company expects revenue to be between AU$200 million and AU$206 million, up between 12% and 15% respectively, and underlying EBITDA to be up by 17% to 23% to between AU$100 million and AU$105 million. NextDC expects to spend AU$280 million to $300 million in capital expenditure for the full year.

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