31 August 2017

NEXTDC reports record results for FY17

NEXTDC today announced its financial results for the full year ended 30 June 2017 (“FY17”).

FY17 financial highlights

  • Revenue of $123.6 million vs guidance range of $115-122 million (FY16: $92.8 million)
  • EBITDA*1 of $49.0 million vs guidance range of $46-50 million (FY16: $27.7 million)
  • Statutory net profit after tax of $23.0 million*2 (FY16: $1.8 million)
  • Cash and term deposits of $368.3 million at 30 June 2017

Subsequent to 30 June 2017, the Company has also increased its senior secured debt facilities from $100 million to $300 million. These facilities currently remain undrawn.

Commenting on the FY17 financial results, Mr Scroggie, Chief Executive Officer said: “We are very pleased with our FY17 results. They demonstrate the Company’s continued strong growth with significant increases in contracted utilisation, strengthening EBITDA and a more than doubling of operating cash flow. Coupled with liquidity greater than $600 million, NEXTDC is in an outstanding position to take advantage of current and future customer opportunities.”

Business performance

As at 30 June 2017:

  • Contracted utilisation up 21% to 31.5MW (30 June 2016: 26.1MW)
  • Number of customers up 19% to 772 (30 June 2016: 647)
  • Interconnection*3 (cross connects) up 39% to 6,342 (30 June 2016: 4,575)

Commenting on the Company’s sales performance, Mr Scroggie said: “We continue to experience strong demand for NEXTDC’s premium data centre services right across the national footprint. NEXTDC’s sales pipeline is at an all-time high. We are currently in advanced negotiations in relation to several large customer opportunities, which are likely to result in a significant increase in the Company’s contracted utilisation base”.

Development activity

  • B2 (Brisbane) and M2 (Melbourne) developments on track for completion in record time for customer access in 1H18
  • S1 planned capacity has been upgraded by 1MW to 16MW
  • B2 planned capacity has been increased by 6MW to 12MW
  • M2 planned capacity has been increased by 15MW to 40MW
  • S2 development approval secured with development underway
  • S2 is subject to a 45-year ‘ground lease arrangement’ with the Company planning to fund and retain the base building structure

Setting new industry standards

  • P1 achieved the highest possible UTI GOLD operational sustainability certification
  • C1 critical infrastructure upgrade has been completed in line with NEXTDC’s Generation I Tier III build standard
  • B2, M2 and S2 aiming to achieve UTI Tier IV design and construct certification as well as industry leading NABERS 5.0 star energy efficiency design

Mr Scroggie said: “NEXTDC is in great shape and continues to raise the bar for the industry. FY17 has been the most significant year in our history. Three new world-class hyperscale data centres are in development as we achieve industry leading certifications for design and construct standards, operational excellence and energy efficiency. NEXTDC’s ability to attract new investment and new business is creating incredible value for Australia’s digital economy, where cloud and colocation are playing an increasingly critical role.”

Outlook

NEXTDC expects the following outcomes for FY18:

  • Underlying revenue*4 in the range of $146 million to $154 million (FY17: $123.6 million)
  • Underlying EBITDA*4 in the range of $56 million to $61 million (FY17: $49.0 million)
  • Capital expenditure between $220 million to $240 million (FY17: $159.0 million)

For more information, please access NEXTDC's FY17 Results Announcement, Results Presentation and Annual Report in NEXTDC's ASX Announcements.

1 EBITDA is a non-statutory financial metric representing earnings before interest, tax, depreciation and amortisation. Non-statutory financial metrics have been extracted from the audited accounts

2 FY17 statutory NPAT includes $10.2m of income tax benefit stemming from the recognition of unused historical tax losses (FY16: nil)

3 Comprises both physical and elastic cross connections

4 Before taking the impact of the current APDC takeover offer into account, including any distributions received, accounting impact and transaction costs