Megaport 1H revenue up on the back of continued expansion

Megaport 1H revenue up on the back of continued expansion

Australian data centre business Megaport (ASX: MP1) continued its gradual growth at home and overseas during the first half resulting in a healthy amount of revenue.

The company's first half revenue was $15.2 million, an increase of 72 per cent from the same period ending 31 December 2017.

Total monthly recurring revenue was also up during December 2019 by $1.1 million to $2.7 million.

Megaport CEO Vincent English (pictured) says the positive results are emerging from continued investments made by the company in physical expansion and sales.

"Megaport had a solid performance during the first half of fiscal year 2019," says English.

"During the period, we made significant investments in our sales and go-to-market engine while continuing to expand our footprint to new data centres and integrating with more cloud onramps."

At the end of the first half Megaport had 1,277 customers across 386 data centres in 82 cities.

Of these data centres, 78 were located in the Asia Pacific region, 209 in North America, and 99 in Europe.

The company's best results came from North America where revenue increased by 80 per cent during 1H19.

Monthly recurring revenue in North America was described as a "major growth milestone" by Megaport, up from $0.55 million in June 2018 to $1 million in December 2018.

English says the company's European plans are also coming together.

"In Europe, average services per customer increased by 20 per cent as a result of increased adoption of cloud connectivity services," says English.

Megaport today also appointed Peter Hase as chief commercial officer of the company, Simon Moore as lead independent director of the company, and Jay Adelson has non-executive board member.

Adelson was the founder of data centre company Equinix (listed on the NASDAQ) in 1988 as well as being instrumental in the build and operations of the original Palo Alto Internet Exchange.

Shares in Megaport are up 0.27 per cent to $3.75 per share at 10.19am AEDT.

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