NEXTDC achieves EBITDA of $3m

Firm reports positive earnings before interest, tax, depreciation and amortisation during second half of 2014

NEXTDC CEO Craig Scroggie.

NEXTDC CEO Craig Scroggie.

NEXTDC (ASX: NXT) has recorded its first positive earnings before interest, tax, depreciation and amortisation (EBITDA) of $3 million for the half year ended 31 December 2014.

In the first half of 2014, the data centre vendor reported an EBITDA loss of $3.4 million.

For the financial year 2014, it recorded an underlying EBITDA loss of $16.1 million.

NEXTDC also reported data centre service revenues of $26.7 million, up from $11.4 million in the first half of 2014. However, it recorded a net loss of $5.8 million, compared to $7.3 million for the half year ended 31 December 2013.

Commenting on the results, NEXTDC CEO Craig Scroggie said it was pleased with the EBITDA contributions that the M1 Melbourne, S1 Sydney and B1 Brisbane data centres now make to the group.

“The strong EBITDA margins being achieved at each site are only possible through the efficiency and scale of our operations and the hard work of our great team,” he said in a statement.

Based on the company’s current financial performance, it is forecasting a data centre revenue of between $55 million and $60 million and EBITDA of between $6 million to $8 million for the financial year 2015.

In February 2015, the company announced that its customers will be able to connect to Microsoft's Azure cloud from NEXTDC data centres in Melbourne, Sydney, Brisbane, Canberra and Perth during the second quarter of 2015.

The ExpressRoute service uses a high-speed low latency fibre connection to access Azure. According to the data centre vendor, latency levels will be as low as one millisecond in some data centre locations.

Scroggie said the collaboration will help customers with their hybrid cloud strategies as they can use a physical data centre to access the cloud.

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