NextDC
A NextDC data centre. Photo – NextDC.
  • NEXTDC saw its revenue rise 27% to $121.6M; underlying EBITDA $65.7M (up 29%)
  • Balance sheet contains $1.8B of liquidity and $2.6B of total tangible assets.
  • Earlier guidance was upgraded to to forecast EBITDA of $130M to $133M

As goes the internet, so go the data centres that represent the ‘back end’ of the whole online economy.

If data is the new oil, then data centres are the oil and gas companies. Founded in 2010, ASX-listed NEXTDC (ASX: NXT) operates eleven data centres around the country.

These dedicated spaces house an array of computer systems and associated components, such as all the telecommunications and storage systems required to keep the internet running. They allow you the bandwidth to download and store images, videos, documents and everything else you want to pump along the information superhighway.

NEXTDC saw its revenue rise 27% last year to $121.6M, with an underlying EBITDA of $65.7M (up 29%).

Technically, the company posted an overall loss of $17.5M, although this was mainly due to higher depreciation and some one-off refinancing costs, the company said in its half-yearly results presentation.

Their balance sheet, which contains $1.8B of liquidity, has $2.6B of total tangible assets. The company’s billing utilisation increased 32% to 56MW, and they are building an additional 10MW in Sydney and Melbourne.

Customer growth is averaging +20% CAGR, with 39% of their customers being enterprise, plus government, financial services, digital media and other clients (numbering more than 1,400 in total).

The company upgraded its earlier guidance to forecast $246M to $251M revenue (formerly $242M to $250M) and EBITDA of $130M to $133M ($125M to $130M).

Last week, the company was named the most reliable data centre at the 2020 APAC Business Awards. They were recognised for their “expertise, customer service, and commitment to promoting excellence within the data centre industry”.

Share price was $11.29 at the time of publication, equating to a $5.2B market capitalisation.

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