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Highlights
- Megaport has upgraded the normalised EBITDA guidance for FY23 to between AU$19 million and AU$21 million
- The company expects to exceed previous EBITDA guidance of AU$41 million to AU$46 million in FY24
- The guidance has been upgraded as a result of continuous improvement in financial performance and operating metrics
Megaport Limited (ASX: MP1) upgraded its guidance for the financial year 2023 (FY23) and 2024 (FY24) on Tuesday (11 July 2022) following continuous improvement in financial performance and operating metrics. The information technology company also revealed that it was net cash positive in the fourth quarter of FY23. It includes a redundancy payment of around AU$2.6 million.
Triggered by the ASX update, shares of Megaport jumped 28.12% to AU$8.61 per share at 2:06 PM AEST. The stock price has gone up nearly 15.59% in one month and gained 32.15% in the past six months. Yearly rise is 34.79%, and year-to-date rise is 42.04%. In the last five years, the share price has zoomed by 134.42%.
The company offers elastic interconnection services globally. The global platform of Megaport, which uses software-defined networking, enables customers to establish a connection between their networks and other services. Customers can manage the services through their mobile phones, computer and the company’s open API.
Details of the upgraded guidance for FY23 and FY24
Megaport has upgraded its normalised EBITDA guidance from AU$16 million-AU$18 million to AU$19 million-AU$21 million for FY23. Reported EBITDA guidance has also been upgraded to AU$24 million-AU$26 million.
For FY24, the company expects EBITDA guidance to surpass the previous guidance of AU$41 million-AU$46 million. Detailed guidance has yet to be provided and is expected no later than the announcement of FY23 full year results.
In addition to this, the company expects to be net cash positive in FY24. It excludes future strategic initiatives that the company may undertake and includes planned capital expenditure and incremental growth in sales headcount.
Megaport to terminate HSBC debt facility
Through today’s ASX update, the company informed that the board has decided to end its AU$25 million HSBC debt facility as it is no longer required and to reduce cost. The board has shown confidence that if a bank debt requirement occurs in the future, the company could get a larger facility because of improved financial performance.
