NextDC Reports Annual Loss on Investment Costs

Australian data-center operator NextDC has announced a loss for the fiscal year ending in June due to investment costs. Despite a 25% increase in revenue to AUD 362.4 million, the company reported a loss of AUD 25.6 million, compared to a profit of AUD 9.1 million the previous year. The expansion of their capacity to meet the growing demand for cloud-computing services contributed to this setback.

NextDC's underlying earnings before interest, tax, depreciation, and amortization (EBITDA) reached AUD 193.7 million, a rise from AUD 169.0 million the previous year. Initially forecasting AUD 190 million-AUD 198 million in underlying EBITDA, the company revised its estimate in May to AUD 192 million-AUD 196 million.

No dividend was declared by NextDC.

According to data compiled by FactSet, analysts had forecasted a net loss of AUD 13.9 million with revenue of AUD 354.1 million.

NextDC Expands Its Operations in Malaysia and New Zealand

NextDC, a leading data center operator, has announced its plans to expand into international markets by establishing new centers in Malaysia and New Zealand. This move comes after the company successfully raised A$618 million in equity funding.

According to NextDC, construction is expected to commence in Kuala Lumpur and Auckland during fiscal 2024, with completion estimated for the first half of fiscal 2026.

In line with its expansion plans, NextDC forecasts a capital expenditure of A$850 million to A$900 million for fiscal year 2024. This represents an increase from A$690.4 million in fiscal 2023 and A$603 million in the previous year.

Furthermore, NextDC anticipates an underlying EBITDA of A$190 million to A$200 million for fiscal year 2024. The company predicts that its operating leverage will accelerate as forward orders translate into additional revenue starting from fiscal year 2025. It also expects to see an expansion in margins from the second half of fiscal year 2024 due to price hikes and reduced power costs.

"FY24 represents a critical investment year for NextDC to expand and enhance its market-leading platform capabilities, making the necessary investments to leverage the next decade of growth, both domestically and internationally," stated Craig Scroggie, the Chief Executive and Managing Director of NextDC.

It is an exciting time for NextDC as it seeks to strengthen its presence globally and capitalize on the opportunities for growth.