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NextDC has recorded what it claims is “another record result” once again for its 2024 financial year with rises in revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) while its statutory loss after tax doubled.
According to its financial report released to the Australian Securities Exchange, the data centre operator’s revenue for the 12 months to 30 June increased by 12 per cent year-on-year to $404.3 million, while underlying EBITDA rose by 5 per cent to $204.3 million.
Meanwhile, its net loss after tax deepened from $22 million in the red in the financial year prior to $44.1 million.
In FY23, NextDC previously reported its loss after tax sat at $25.6 million. This was adjusted in its latest financial report due to the data centre operator identifying an error relating to the capitalisation of borrowing costs during the construction of qualifying assets.
This resulted in the company understating its depreciation expenses, overstating its interest expense and a corresponding understatement of property, plant and equipment. This meant its net loss after tax in FY23 was specified to be $3.6 million higher than it should have been.
Commenting on the results, NextDC CEO and managing director Craig Scroggie said the underlying EBITDA result was above the top end of its guidance range for the financial year and the company also experienced a record increase in pro forma contracted utilisation and forward order book of 86.6 megawatts.
“With liquidity of $2.7 billion and a low gearing ratio of 3.4 per cent, the company is well placed to continue to accelerate its development activities and deliver inventory in line with customer orders, in addition to taking advantage of the opportunities presented by the strong ongoing demand from traditional enterprise and cloud computing segments, edge computing, as well as the rapid acceleration of AI applications that are underpinning the fourth industrial revolution,” he said.
Looking to FY25, NextDC predicted the financial year ahead will be focused again on further growth investment, with net revenue between $340 million to $350 million. This, the company explained, would be due to its forward order book converting into revenues towards the end of the financial year, as well as ICT alliances and partnerships and record reservations and options signed in FY24.
Underlying EBITDA is expected to increase to a range of $210 million to $220 million.
Scroggie added that FY25 will be a “landmark year” for NextDC as it plans to make strategic investments to expand its platform.
“As AI and cloud technologies increasingly drive global enterprise, the demand for speed, scalability, and reliability in digital infrastructure will continue to surge,” he said.
“NEXTDC is at a pivotal inflection point, strategically building the foundational systems that will empower hyperscale customers, enterprises and government agencies to excel in this new era.
“We are confident that these targeted investments will not only fuel significant growth but also position NextDC as a central pillar in the digital infrastructure landscape across the Asia Pacific region.”
Those investments, the data centre operator’s guidance claims, include capability investments in people in preparation for the business to be doubled in size and a strategic shift towards scalable and flexible IT systems and software.