The Macquarie Telecom Group Ltd (ASX: MAQ) share price broke its all-time high for the fifth successive day after announcing a new data centre and reaffirming its earnings guidance for the last financial year.
At the time of writing, shares in the telco are trading at their high of $61.79 – up 12.33%.
Let’s take a closer look at today’s news.
Why the Macquarie Telecom share price is flying
In a statement to the ASX, Macquarie Telecom confirmed its earnings before interest, taxes, depreciation, and amortisation (EBITDA) for FY21 will be between $72 million and $75 million. This was previously announced and is an increase of up to 15% on FY20.
Investors are clearly loving the news, judging by the jump in the Macquarie Telecom share price.
Only yesterday, Motley Fool Australia reported on Macquarie Telecom breaking its previous all-time high. Yesterday, it was growing 3x faster than Telstra Corporation Limited (ASX: TLS) – today it’s growing 4.5x faster.
In other news possibly affecting the Macquarie Telecom share price, its subsidiary – Macquarie Data Centres – has lodged a State Significant Development Application to build a new data centre at the Macquarie Park Data Centre Campus. The new data centre will be called “IC3 Super West” and will be the largest data centre on the campus.
IC3 Super West will also house the “Sovereign Cyber Security Centre of Excellence” with support from Investment NSW.
In its most recent half-year results, data centres compromised 25.5% of all revenue but grew at less than half the rate of overall revenue.
CEO of Macquarie Telecom Group David Tudehope says the new centre will be good for the whole country, not just the company.
“This global-scale data centre campus will attract new investment into Australia from multinationals looking to expand in the Asia Pacific region.”
Macquarie Telecom share price snapshot
Over the past 12 months, the Macquarie Telecom share price has increased 35%. Just in the last month, shares in the company have increased by 17% and are up 15% year-to-date.
Macquarie Telecom has a market capitalisation of approximately $1.2 billion.