ASX-listed Macquarie Telecom Group has reported better than expected, which were at the top end of its guidance, on the back of increased traction across all its business areas.
Revenues for the full year came in at $309.3 million, an increase of 8.5% compared to $285.1 million for FY21. Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $88.4 million, an increase of 19.8% from prior year, at the top end of June’s guidance.
Net profit after tax (NPAT) of $8.5 million, reflecting the increase in depreciation & amortisation flowing from the significantly higher levels of capital expenditure since FY20. Chairman Peter James said:
“The 2022 full year results delivered the eighth consecutive year of EBITDA growth underpinned by our strategy of investing in Data Centres, Cloud, Cyber Security and Telecom. It is very pleasing to see that EBITDA has grown year on year in every segment.”
Performance
Macquarie Telecom Group said that it has clocked 8 consecutive years of EBITDA growth. Conversion of EBITDA to operating cash flows generated total operating cash flows of $98.0 million during the year. There is a closing cash balance of $3.0 million and undrawn debt facilities of $64.0 million having drawn down $126.0 million.
The company has completed work on the fit-out of Intellicentre 3 East data center development (“IC3”) and has commenced billing of its hyperscale customer. Chief Executive David Tudehope said:
“Macquarie Telecom Group is a sovereign digital infrastructure business at scale. We continue to grow because we pair the best technology with the best customer service, and that recipe hasn’t changed since the company was founded in 1992. Macquarie Telecom Group continues to see strong growth in data centers, cloud computing, cyber security and our core telecom business.”
Depreciation and amortisation for FY23 is expected to be $70 to $74 million, driven by full year impact of IC3 in FY22. Cloud Services & Government and Telecom depreciation to remain broadly flat at $27 to $28 million and $19 to $20 million respectively in FY22.
The company’s EBITDA will continue to grow in FY23. Due to investments being made in Data Centers and Cloud Services & Government in the 1H FY23, EBITDA will grow in 2H FY23, it said in its guidance.
Expected EBITDA for the Data Center’s business in FY23 is between $31 to $33 million. The company said that it is able to increase the total IT load capacity of IC3E by approximately 1MW independent of the IC3 Super West build. Additionally, it will invest in this opportunity by 2H FY23 and this leverages its existing investment in IC3E.
In FY23, total capex is expected to be between $76 to $80 million, the company said.
