NEXTDC has reported a strong first half (H1) performance, has upped its guidance for the second half of the financial year, on the back of significant customer wins.
Data centre services revenue increased $22.9 million (19%) to $144.5 million (1H21: $121.6 million). Underlying EBITDA increased $19.3 million (29%) to $85.0 million (1H21: $65.7 million).
This resulted in an improved operating cash flow which went up by $5.9 million (9%) to $69.5 million, the company said. Liquidity (cash and undrawn debt facilities) of $2.1 billion at 31 December 2021.
“We are pleased to deliver another record result in 1H22, with strong metrics across the business that now positions the Company to provide upgraded earnings guidance for FY22. NEXTDC’s leading national digital infrastructure platform continues to demonstrate strong growth and critical resilience as it continues to mature.” NEXTDC Chief Executive Officer and Managing Director, Craig Scroggie
Further, contracted utilisation increased 10.0MW4 (14%) to 81.0MW and customer numbers grew by 144 (10%) to 1,569. In December 2020, total customers were 1,425.
Interconnections rose to 1,968 (14%) from 15,87, representing 7.3% of recurring revenue. Commenting on the upgrade to guidance, Scroggie said: “As a result of the strong 1H22 performance, the company is able to upgrade its FY22 guidance as well as accelerate project investments in 2H22. With liquidity of over $2 billion, combined with record operating cashflow, NEXTDC is in an outstanding position to take advantage of current and future customer opportunities and to press its advantage into new regions and edge locations.”
NEXTDC said that its S3 Sydney building construction tracking on time, on budget, with practical completion of Stage 1 (12MW of initial capacity) and is on target for 2H22.
M2 Melbourne fitout continued with 3MW of capacity added to support customer requirements. Building expansion works continue on time, on budget, with 3MW of additional capacity being added to support customer growth. M3 Melbourne building construction on time, on budget, with practical completion of Stage 1 (13.5MW of initial capacity) on target for 1H23. An additional 4.5MW of capacity is being added to support early customer contracted requirements, said NEXTDC.
Additionally, in December 2021, NEXTDC acquired its first edge data centre Sunshine Coast (SC1), an operational site with 0.2MW of built capacity, targeting 1MW at the time of completion and new sites secured for D1 Darwin and A1 Adelaide.
Based on current billing, contracted utilisation levels and expected new customer contracts, NEXTDC said that for FY22, Data centre services revenue is expected to be in the range of $290 million to $295 million (upgraded from $285 million to $295 million).
EBITDA is expected to be in the range of $163 million to $167 million (upgraded from $160 million to $165 million) and capital expenditure of $530 million to $580 million (upgraded from $480 million to $540 million).