NextDC lowers loss as revenue jumps

Increased customer revenue and datacentre development fees see company's revenue grow seven times over.
Written by Chris Duckett, Contributor

Data centre operator NextDC has seen a spike in revenue for the 2013 financial year as the company's annual loss lowered to $2.2million for the year from a loss of AU$10.6 million in 2012.

The company increased its revenue from its data centre services to AU$9 million in 2013 from AU$1.2 million the previous year. The increase was due to NextDC's Melbourne and Canberra data centres coming online, whereas 2012 revenue was only available from its Brisbane location. NextDC's Sydney and Perth locations are expected to come online and contribute during the next twelve months.

An AU$24.4 million boost to revenue was delivered by Asia Pacific Data Centre (APDC) property trust after completing the Sydney data centre, and it is expected that the company will see a similar revenue injection on the completion of the Perth data centre.

Against this revenue, the company incurred AU$18 million in data centre development costs, as well as a four-fold increase in data centre facility costs to AU$8.9 million.

APDC was established during the 2013 financial year, with NextDC transferring its Melbourne land and building assets, Sydney land, and Perth land over to the new trust, as well as entering into development agreements for NextDC to construct data centres in Sydney and Perth, and for NextDC to lease back its transferred assets from the trust.

NextDC lost its controlling stake in APDC after the trust was listed on the ASX, with NextDC banking AU$28.1 million after transaction costs.

During the year, NextDC signed over 120 customers and entered into deals with Australia Post, Pacnet, Optus, and Dimension Data.

"The company has achieved many important milestones in development, sales and capital recycling during the year and is well placed to capitalise on its position as the only national provider of vendor and carrier-neutral datacentres," said NextDC CEO Craig Scroggie in a statement.

NextDC is currently in a trading halt until Thursday pending a capitial-raising announcement.

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