WHY NEXTDC'S STOCK IS SOARING

WHY NEXTDC'S STOCK IS SOARING

AFTER posting its interim result, NEXTDC (ASX: NXT) gained more than 12 per cent on the stock market before noon.

The Brisbane data centre company reported a revenue rise of 39 per cent to a company record of $58.7 million.

NEXTDC took in earnings before interest, taxes, depreciation and amortisation (EBITDA) of $23.9 million for the half year. This was a 110 per cent increase from the prior corresponding period.

Profit before tax was $8 million, up from $600,000.

NEXTDC CEO Craig Scroggie says the 'outstanding performance' reflects the company's 'inherent operating leverage'.

"Combined with a robust balance sheet, [this] puts the business in a strong position to continue to accelerate growth," says Scroggie.

NEXTDC currently has 130 more customers than it did in December 2015. At the end of last year, the total number of businesses taking space in NEXTDC's data centres was 699.

Next item on the agenda for NEXTDC is upgrading the capacity at its Sydney centre. More data hall space is also being fitted out in Sydney and Melbourne to support a growing customer base.

NEXTDC's second Brisbane and Melbourne centres are also on track for completion towards the end of this half year, and a second Sydney centre is waiting development approval.

"FY17 is the biggest year in NEXTDC's history, with planned capital investments of more than $250 million," says Scroggie.

"We are developing three new world class hyperscale data centres to take advantage of the unprecedented demand for cloud and enterprise colocation."

NEXTDC has advised full year revenue in the range of $115 to $122 million, and EBITDA between $46 and $50 million.

NEXTDC was trading at $3.56 on the ASX at midday.

Business News Australia

Get our daily business news

Sign up to our free email news updates.

 
Finexia’s Childcare Income Fund secures ‘very strong’ rating from Foresight Analytics & Ratings
Partner Content
Private credit specialist Finexia Financial Group (ASX: FNX) has secured a “very...
Finexia
Advertisement

Related Stories

"10x in six months": Brisbane startup Xrecruiter opens Melbourne office

"10x in six months": Brisbane startup Xrecruiter opens Melbourne office

A Brisbane-headquartered startup that helps recruiters strike it ou...

Another setback for Tritium as Nasdaq calls out EV charger manufacturer over listing standard

Another setback for Tritium as Nasdaq calls out EV charger manufacturer over listing standard

After restructuring its shares by one-to-200 in order to prope...

US investor Quinbrook gears up to build giant battery at Brisbane’s $2.5b Supernode

US investor Quinbrook gears up to build giant battery at Brisbane’s $2.5b Supernode

US-based investment group Quinbrook Infrastructure Partners is pois...

Netwealth founder to leave executive role as funds rise $6.7 billion in three months

Netwealth founder to leave executive role as funds rise $6.7 billion in three months

One of the largest wealth managers on the ASX reported a $6.7 billi...