FIIG - The Fixed Income Experts

News and Education

NEXTDC Ltd - 1H15 trading update

by Will Arnold | Mar 03, 2015

Published 26 February 2015

Key points

  • First ever positive EBITDA of $3m 1H15 (loss of $3.4m 1H14), and shrinking net loss to $5.8m ($7.3m 1H14)
  • The company continues to performs strongly beating expectations and again increasing full year forecasts (shares up ~11% on the day)
  • Forecast full FY15 EBITDA of $6-8m, compared FY14 EBITDA loss of $16.1m
  • NextDC has good liquidity, low net debt, good asset backing.  While continuing to post losses, it is quickly moving to profitability and looks relatively attractive in the AUD space


Source: FIIG Securities, Company presentation


  • Data centre revenue up 134% to $26.7m (1H14: $11.4m)
  • New sales up 164% to 2.5MW (1H14: 940kW)
  • First period of positive EBITDA achieved of $3.0m (1H14: $3.4m)
  • First period of positive operating cash flow achieved of $2.2m (1H14: $3.9m)
  • Statutory net loss of $5.8m (1H14: $7.3m net loss)
  • Good liquidity: Cash on balance sheet of $62.3m and $20m available in undrawn secured lending facility
  • Net debt of $3.87m, Net debt/EBITDA 1.3x
  • Net tangible assets of $216.7m

Forecast FY15:

  • Total new sales between 3.4MW and 4.0MW (up 37% on prior guidance)
  • Data centre revenue between $55m and $60m (up 8% on prior guidance)
  • Capital investment on plant and equipment of between $35m and $42m (up 18%)
  • Fixed costs, excluding power and consumables, of between $44m and $46.5m (unchanged)
  • FY15 EBITDA of between $6m-8m

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