NextDC (ASX:NXT) share price climbs 5% on record results

What did the NextDC half-year results reveal? Let’s take a look…

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Key points

  • NextDC share price is soaring by almost 5%
  • Underlying EBITDA for 1H FY22 surged 29% 
  • Data centre services revenue jumped by 19% to $144.5 million 

The NextDC Ltd (ASX: NXT) share price is in the green today on the back of the company’s half-year results and upgraded guidance.

At the time of writing, NextDC’s shares are swapping hands at $10.70 apiece, a 4.9% gain. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 2.21%.

Let’s take a look at what the data operator reported today.

NextDC share price jumps as revenue, profit lifts

Highlights of the company’s half-year (H1 FY22) results include:

What else happened in the half?

NextDC achieved this result due to a number of metrics including a 10% boost in customers on the pcp to 1,569. Interconnections also grew by 14% to 15,879, accounting for 7.3% of recurring revenue.

The company improved its contracted utilisation by 14% to 81 megawatts. Billing utilisation surged 25% to 71 megawatts.

In the first half of FY22, NextDC invested $260.7 million in capital development projects. The company also completed a $2.5 billion senior syndicated debt facility with better terms, extended tenor, and a lesser cost of debt.

NextDC continued to invest in its AXON customer connectivity platform. NextDC was named as one of just a few Amazon Web Services direct-connect high-capacity service delivery partners in the world.

The company reported a total of $2.9 billion in assets. This includes data centres in Melbourne, Sydney, Sunshine Coast, Darwin, Brisbane, Perth, and Canberra.

Management commentary

Commenting on the results boosting the NextDC share price, chief executive officer and managing director Craig Scroggie said:

We are pleased to deliver another record result in 1H22, with strong metrics across the business that now positions the company to provide upgraded earnings guidance for FY22.

NextDC’s leading national digital infrastructure platform continues to demonstrate strong growth and critical resilience as it continues to mature.

What’s next for NextDC?

NextDC has upgraded its guidance for FY22. The company predicts data services revenue between $290 and $295 million, up from $285 to $295 million.

Underlying EBITDA has also been upgraded to between $163 and $167 million, up from $160 to $165 million.

And capital expenditure has been upgraded to between $530 million and $580 million, up from $480 to $540 million.

Commenting on the future outlook, Scroggie added:

As a result of the strong 1H22 performance, the company is able to upgrade its FY22 guidance as well as accelerate project investments in 2H22.

With liquidity of over $2 billion, combined with record operating cash flow, 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 location.

NextDC share price summary

The NextDC share price has dived 5% in the past 12 months while it is down 17% year to date.

For perspective, the benchmark ASX 200 has returned around 4% over the past year.

NextDC has a market capitalisation of about $4.66 billion.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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