NextDC profit slumps while new datacentres fitted out

Revenue for NextDC has increased sixfold as the company spent AU$72 million fitting out its datacentre assets.
Written by Chris Duckett, Contributor

NextDC has posted AU$28.8 million of revenue for the first half of its 2014 financial year, up sixfold from the AU$4.8 million stated for the corresponding period last financial year. EBITDA for the company is off by almost 150 percent, slumping from a AU$7.3 million profit to a AU$3.4 loss for the datacentre service provider.

For the half year until the end of the 2013 calendar year, the company invested AU$82.5 million in buildings and fitting out of datacentre halls, which also saw the company bring its Sydney premises online and the end of construction of its Perth building. The companies Melbourne and Brisbane facilities were both able to break even within 12 months of accepting customers.

The company stated in its financial results posted to the ASX yesterday that it has 202 customer agreements in place that represent a 76 percent utilisation of its capacity. During the half year, NextDC almost doubled its number of interconnects from 513 to 1,006.

"NextDC has recently been focused on the rapid development of its national network of carrier and vendor-neutral datacentres," said NextDC CEO Craig Scroggie in a statement.

"As the company begins to transition out of the development phase, and leverages its impressive national network of datacentres, the operating leverage of the model will become more pronounced in the financial results."

The company raised over AU$130 million in the half, AU$50 million was completed in a "heavily oversubscribed" share offering, and AU$30 million arrived thanks to a new debt facility.

"Our focus now turns to enabling our broad network of channel partners and continuing to build on the development of our rich customer ecosystem," he said.

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