Data centre provider NextDC has achieved significant growth in its business, with revenue jumping 39% to $58.7 million for the six months to the end of December.
The company recorded a $18.7 million year-on-year increase in after-tax profit to $19.3 million for the half year, with chief executive Craig Scroggie saying the record revenue “puts the business in a strong position to continue to accelerate growth”.
And NextDC also reported earnings before interest, taxation, depreciation, and amortisation (EBITDA) were up 110% to $23.9 million..
According to Scroggie, the 2017 financial year is the biggest in the company’s history, with planned capital investments of more than $250 million.
“We are developing three new world-class hyperscale data centres to take advantage of the unprecedented demand for cloud and enterprise co-location,” he said.
{loadposition peter}And, the NextDC chief also said the “outstanding performance reflects the company’s inherent operating leverage, which combined with a robust balance sheet, puts the business in a strong position to continue to accelerate growth”.
NextDC reported strong growth in interconnection which Scroggie says has seen the average number of cross-connects per customer increase to nearly 80 at 31 December, highlighting “customers’ increasing use of the data centres to build hybrid clouds and expand their ecosystems”.
Last September, NexDC announced plans to build a second Sydney data centre to meet what it said was growing demand in the Sydney market for data centre services.
The development is being funded with a fully underwritten $150 million capital raising to acquire land, and for other general corporate purposes.
Releasing today’s results, Scroggie said development approvals for the new Sydney data centre were underway and “practical completion” was expected towards the end of the first half of 2018.