24 February 2021

FY21 Half-Year Result & Upgraded Full Year Guidance

NEXTDC Limited (ASX: NXT) (“NEXTDC” or “the Company”) today announced its financial result for the half-year ended 31 December 2020 (“1H21”) as well as provided an upgrade to its FY21 guidance.

1H21 financial highlights

  • Data centre services revenue grew $26.2 million (27%) to $121.6 million (1H20: $95.4 million)
  • Underlying EBITDA rose $14.9 million (29%) to $65.7 million (1H20: $50.9 million)
  • Operating cash flow increased $44.0 million (219%) to $64.1 million (1H20: $20.1 million)
  • Liquidity (cash and undrawn senior debt facilities) of $1.8 billion at 31 December 2020

NEXTDC Chief Executive Officer and Managing Director, Craig Scroggie, commented on the 1H21 results:

“We are pleased to deliver another record result in 1H21, against a more difficult economic backdrop due to the COVID-19 global pandemic. Despite lockdowns and travel restrictions the Company delivered its largest historical contracted build capacity for customers in 1H21. Whilst COVID-19 has presented headwinds for many globally, it continues to be a positive catalyst for digital services and technology providers supported by our data centre platform.”

Business performance

For the 12 months to 31 December 2020:

  • Contracted utilisation grew 17.7MW (33%) to 71.0MW (31 December 2019: 53.3MW)
  • Number of customers increased by 201 (16%) to 1,465 (31 December 2019: 1,264)
  • Interconnections increased by 1,899 (16%) to 13,911 (31 December 2019: 12,012), representing 7.6% of recurring revenue (1H20: 8.2% of recurring revenue)

Development activity

For the 6 months to 31 December 2020:

  • S2 Sydney added 4MW of capacity, taking total installed capacity to 26MW
  • M2 Melbourne added 6MW of capacity, taking total installed capacity to 16MW
  • S3 Sydney development continues with building construction works commencing in 1H21, on track for practical completion of Stage 1 in 2H22
  • M3 design and development approval formally submitted to council and received endorsement

FY21 upgraded guidance

Based on current billing and contracted utilisation levels as well as expected new customer contracts during 2H21, NEXTDC provides the following guidance for FY21:

  • Data centre services revenue in the range of $246 million to $251 million (previously $242 million to $250 million)
  • Underlying EBITDA in the range of $130 million to $133 million (previously $125 million to $130 million)
  • Capital expenditure in the range of $380 million to $400 million (unchanged)

NEXTDC Chief Executive Officer and Managing Director, Craig Scroggie, commented on the outlook:

“During 1H21 we delivered our largest construction and development backlog of sold capacity to customers on time, on budget, giving us a high degree of confidence for a full year revenue and EBITDA upgrade. Second half sales in FY21 have already exceeded our expectations and we expect further strong demand for our premium data centre services into FY22“

For full details read the ASX annoucement and the 1H21 results pack.