NEXTDC Limited (ASX: NXT)- NEXTDC announces better than expected results

  • Aug 31, 2018 AEST
  • Team Kalkine
NEXTDC Limited (ASX: NXT)- NEXTDC announces better than expected results

After recently winning the badge of first data centre operator who has achieved Tier IV Gold Certification of Operational Sustainability by Uptime Institute in the Southern Hemisphere, NEXTDC today announced its financial results for the year ended 30 June 2018.

NEXTDC’s revenue moved ahead of guidance range, recording $37.98 million increase to $161.52 million for the year ended 30 June 2018.

Underlying EBITDA increased to $62.6 million from $49.0 million in previous year, driven by ecosystem growth and new facility developments taking an advantage of higher density requirements. Capital expenditure of $285 million laid well below the underlying guidance range of $307-$327 million. 

There has been strong growth in interconnection drives reporting average interconnects per customer to 8.9, up 9% on previous year result of 8.2. Contracted utilization has also gone up by 28% to 40.2MW, including highest utilization of 15.2 MW from Sydney’s S1 development.

But profit after tax has massively declined from $23.0 million in FY17 to $6.6 million due to rising energy costs and other cost associated with facility expansions.

On FY19 outlook company expects revenue to range between $194 million to $200 million, which is 20%-24% more than FY18 revenue, underpinned by long-term customers contracts. Underlying EBITDA is forecasted to range within $75 million and $80 million, up 20%-28% on FY18.

Also, its been heard that data center operator NEXTDC will invest $2.25 billion in its three new sites located at Sydney, Melbourne and Perth.

No dividend has been proposed or declared for FY18 with the view of re-investing growth capital.

NXT stock has dropped 3.53% to $7.090 on 31 August 2018 (7:44 PM AEST).

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