NEXTDC’s Shares Tumble On ASX: $3.1 Million Net Loss In 1H FY2019, 26% Increase In EBITDA

NEXTDC’s Shares Tumble On ASX: $3.1 Million Net Loss In 1H FY2019, 26% Increase In EBITDA

NEXTDC Limited (ASX: NXT), a company from the Information Technology sector and engaged into the establishment, development and operations of data centre facilities, has announced its half-yearly results for the period ended 31 December 2018.

During the period, there was an increase in the revenue by 17% as compared to its previous corresponding period. The underlying EBITDA increased by 26% to $42.2 million as compared to the prior corresponding period. However, the company incurred a statutory net loss after tax of $3.1 million. The contracted utilization went up by 28% to 50.4MW. The period reported a fall in the operating cash flows by 44% to $15 million.

During the period, the company issued unsecured notes for raising $300 million. By the end of 31 December 2018, the cash and undrawn senior debt facilities were $644 million.

During the period, the contracted utilization increased by 28% to 50.4MW. From 31 December 2017, the number of customers increased from 875 and reached 1,090 by the end of 31 December 2018.

During 1H FY2019, S2 was opened to access early customers. S2 is further under the development phase. The company also opened P2 microsite and connectivity hub to enable the early access to the Indigo subsea cable system and even to other telecommunications and cloud infrastructure providers in the WA market. The groundwork for the new 20MW Tier IV site has started. The B2 expansion of the second data hall got executed. The M2 capacity expansion of the third and fourth data halls is under progress and is expected to complete by the end of 2H FY2019.

In November 2018, NEXTDC completed the takeover of the Asia Pacific Data Centre Group which included the underlying data centre properties P1, M1 and S1 for $261 million. It also acquired the underlying B1 data centre property for $24 million. These acquisitions were consistent with the long-term strategy of the company to own the underlying properties for its data centre operations. With these acquisitions, the company was able to save around $15 million on rent annually. These also strengthened the balance sheet as it increased the further tangible assets.

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With these acquisitions, the company expects that interest and distribution income will be lower in the second half of FY2019. Based on this, the company updated its revised guidance for the remaining part of FY2019 and also advised that the changes in the interest and distribution income will not impact the underlying EBITDA. The company expects its revenue to be in range of $180 million to $184 million, which was previously in the range of $183 million to $188 million. The underlying EBITDA will remain unchanged and will be in between $83 million to $87 million. Also, the capital expenditure will remain unaffected and will be in between $430 million to $470 million.

In the last six months, the stock has generated a negative return of 12.63%. However, in the previous 3 months, the stock has generated a positive return of 8.88%. By the end of the trading session on 27 February 2019, the closing price of the stock was A$6.500, down by 8.192%.Today, the stock is down 3.846%, trading at A$6.250 (AS at 2:50 PM AEST, 28 February 2019). The company has a market capitalization of A$2.44 billion with approximately 344.52 million outstanding shares.


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