This article is from the Australian Property Journal archive
INSATIABLE appetite for data has NextDC looking forward to further growth in the coming year, after achieving record numbers in 2019 financial year.
NextDC expects revenue to increase from $179.3 million in FY19 to $200 million to $206 million, and underlying EBITDA to grow from $85.1 million to between $100 million and $105 million.
“We are pleased to report another year of record revenue and EBITDA, demonstrating the inherent operating leverage of the business,” chief executive officer and managing director, Craig Scroggie said.
“NextDC continues to experience strong demand for its premium data centre services, with the company achieving its biggest sales year to date as well as continued robust growth in customer and interconnection numbers,”
During FY19, the group finalised its takeover of Asia Pacific Data Centre Group, bringing an end to the drawn-out and bitter takeover tussle with 360 Capital for control of the group that led to two separate court hearings.
It completed the acquisition of the land and buildings at its P1, M1, S1 as well as B1 centres, bringing rental savings of around $15 million per annum that strengthened the group’s balance sheet and brought control of the underlying properties.
Capital expenditure is expected to be come down from $378 million to between $280 million and $300 million.
Capacity expansions were completed at B2 and M2. Practical completion of the first tower of P2 is due in the second half of FY20, and M3 site planning continues with the Victorian government’s review of the Fishermans Bend precinct.
During the year, the company raised $500 million of senior unsecured debt and refinanced its $300 million syndicated senior secured debt facility, which remains undrawn.
During the period, the company established its first office in Singapore to explore the local market, but works are currently on hold while the Singapore government undertakes a review of the data centre industry.
