Macquarie Technology (ASX: MAQ) expects to report 10th consecutive year of EBITDA growth in FY24

Highlights

• Macquarie offers datacentre, cyber security, cloud and telecom services to government and mid-large customers
• In the financial year 2023, the company delivered 109.2% growth in revenue
• Claiward Proprietary Limited has the highest stake in the firm with the shareholding of nearly 45.19%

Macquarie Technology Group Limited (ASX:MAQ) is an Australian firm that offers datacentre, cyber security, cloud and telecom services to government and mid-large customers.

The AUD 1.62 billion market cap company has registered double-digit growth in EBITDA and revenue in the financial year 2023 (FY23). This period marks the ninth consecutive year of EBITDA growth.

During the stated period, revenue jumped 11.6% over the previous corresponding period (pcp) to AUD 345 million and profit after tax zoomed by 109.2% on pcp to AUD 17.6 million. The cash and cash equivalents of MAQ in FY23 was AUD 12.5 million, 323.6% higher than FY22.

MAQ’s offerings across hybrid IT and telecom and migration of government and businesses to the cloud underpinned the company’s yearly performance. The other factors contributing to the performance were utilising the company’s data centre infrastructure and focusing on improving customer experience.

Here’s the historical financial trend of MAQ.

Top 10 shareholders of MAQ

The top 10 shareholders of the company together hold around 61.28% interest in the company, while the top four shareholders have nearly 56.50% interest. Claiward Proprietary Limited and Viburnum Funds Pty Ltd have the highest shareholding in the company, with a stake of ~45.19% and ~8.58%, respectively.

Recent business update

The company today informed that MAQ shares will be included in S&P/ASX All Technology Index with effect from 18 September 2023. Through another update dated 5 July 2023, the company informed that it will be reclassified into the Global Industry Classification Standard (GICS), reflecting the evolution of business.

Earlier, MAQ business was classified as “diversified telecom services” and now has been reclassified into the “Information Technology” sector, part of the “Internet Services & Infrastructure” segment.

Outlook

The company expects to report growth in EBITDA in FY24. MAQ plans to develop its Macquarie Park Data Centre campus further, undertake new initiatives for its telecom segment and invest in cloud services & government to support cyber security and hybrid demand.

In FY24, MAQ aims to invest in growth. For the reported period, the expected telecom capex is flat at AUD 7-8 million, the IC3 Super West capex is expected at AUD 45-50 million, and the expected hosting capex is AUD 72-81 million.

The company also intends to take advantage of the artificial intelligence megatrend.

Share performance of MAQ

MAQ shares closed 1.29% up at AUD 67.68 apiece on 1 September 2023. Including this share price movement, MAQ’s share price increased by 7.41% in a year and by 16.69% in the last nine months.

The 52-week high of MAQ is AUD 71.15 apiece, recorded on 21 August 2023, and the 52-week low is AUD 52.67 apiece, recorded on 15 November 2022. Worth mentioning here is that the existing share price is 4.88% lower than its 52-week high.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 1 September 2023. The reference data in this report has been partly sourced from EODHD/Others.

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