NextDC’s revenue increase sparked by higher demand for data centre services

NextDC’s books went into the black for the first half of FY2022 with an after-tax profit of AU$10.2 million, leading to the Australian data centre services provider upgrading its guidance for the second half with demand expected to remain high.

The AU$10.2 million after-tax profit is a AU$27.8 million jump compared to the same period a year prior.

The data centre provider also saw an uptick in its revenue, which rose by almost one-fifth to AU$144.5 million for the half year, which came alongside the company signing 144 new customers. As a result of this growth, NextDC had a total of 1,569 customers by the end of 2021.

New South Wales and the Australian Capital Territory pulled in AU$67.9 million of that overall revenue, Victoria provided AU$51 million, Queensland contributed AU$13 million in revenue, and Western Australia U$11 million.

NextDC’s underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) was AU$19.3 million for the half, a 29% increase, while operating cash flow rose 9% to AU$69.5 million.

With the strong performance, NextDC CEO Craig Scroggie said the company upgraded its full-year FY22 guidance for data centre services revenue to the range of AU$290 million to AU$295 million, up from its previous position of AU$285 million to AU$295 million. NextDC’s underlying EBITDA was similarly upgraded to the range of AU$163 million to AU$167 million, representing a 1.8% increase.

“With liquidity of over $2 billion, combined with record operating cashflow, NextDC is in an outstanding position to take advantage of current and future customer opportunities and to press its advantage into new regions and edge locations,” Scroggie said.

The unveiling of NextDC’s first-half results follows the company last week announcing it secured land in Adelaide’s CBD to build its 14th data centre, a AU$100 million data centre with 10MW capacity. With an Adelaide data centre now in the works, NextDC has data centres that are either already in operation or being built in every Australian state and territory except Tasmania.

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