NEXTDC CEO, Craig Scroggie
NEXTDC (ASX:NXT) has achieved a statutory net profit of $1.8 million for its 2016 financial year ending June 30, making growth for the company following the $10.3 million in net loss it made in FY15.
Revenue for the datacentre and co-location company was up 52 per cent to $92.8 million following a guidance of between $85 million and $90 million.
Meanwhile, its EBITDA was reported to be $27.7 million, up 247 per cent since the same time last year. NEXTDC suggested an EBITDA guidance of between $25 million and $28 million.
“NEXTDC continues to experience strong growth in the key metrics of revenue and contracted utilization, and we’re pleased to announce the company’s first full year statutory net profit, which is a significant achievement for a young company with substantial capital investments,” NEXTDC CEO, Craig Scroggie, said.
Going forward, Scroggie added that the company will be focusing on completing the build of its B2 Brisbane and M2 Melbourne datacentres.
In November 2015, the company announced its intention to pursue the development of these new datacentres, adding up to 31MW of IT load capacity to its national network over time.
Since then, it has contracted sites for both datacentres and their practical completion is estimated to be the second half of FY17.
FY17 capital investment in B2 and M2 is expected to be between $120 million and $140 million, while the costs for its existing facilities are estimated to be between $80 million and $100 million.
In addition, based on FY16 performance, current utilisation levels and expected new client contracts in FY17, NEXTDC expects revenues in the range of $115 million to $122 million and an EBITDA in the range of $46 million and $50 million.
“We continue to experience strong demand at our existing facilities," Scroggie added.
"The value of our national datacentre network to the regional IT industry continues to grow as we bring new connectivity options to our expanding customer and partner ecosystem.
“When evaluating new material opportunities, the company undertakes a robust and disciplined approach to contract pricing… NEXTDC’s business is long-term in mature, with the bulk of capital expenditure invested upfront and cash flows underpinned by contracted recurring revenue."
NEXTDC has also upsized its undrawn senior secured debt facility with National Australia Bank, from $50 million to $100 million on August 11 - it said these funds remain undrawn.
NEXTDC was trading at $3.89 at the time of publication.
