NEXTDC Share Price Flat on AGM Update (ASX:NXT)

The NEXTDC Ltd [ASX:NXT] share price is flat today after the data centre company held its AGM and provided guidance.

ASX NXT - NEXTDC Share Price ChartSource: Tradingview.com

NXT FY21 performance review

Here are the highlights from NEXTDC’s most recent financial full-year performance:

  • Revenue rose 23% to $246.1 million
  • Underlying EBITDA rose 29% to $134.5 million
  • Contracted utilisation hit 75.5MW, up 8%
  • New customer acquisition rose 13% to 1,547

NXT management described FY21 as a record period for capital investment and growth.

And FY21 was a big year in spending for NEXTDC.

The data centre stock invested $301 million in new capital, according to NXT Chairman Douglas Flynn.

That said, if you look at NXT’s FY21 cash flow statement, the company’s investing activities were below their FY20 level.

NEXTDC spent $310.7 million in FY21 on property, plant, and equipment compared to $397.8 million in FY20.

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NXT FY22 guidance update

NEXTDC also used the AGM as an opportunity to reiterate its FY22 outlook.

The key figures are below:

  • Data centre services revenue of $285 million to $295 million (up 16% to 20% on FY21)
  • Underlying EBITDA of $160 million to $165 million (up 19% to 23% on FY21)
  • Capital expenditure guidance in the range of $480 million to $540 million

NXT noted that FY22 EBITDA guidance excludes costs related to review works into potential data centre investments in Asia and any acquisition opportunities.

NEXTDC CEO Craig Scroggie commented:

Over the past 12 months, the way we live, and work has continued to evolve. Organizations have largely adapted to surviving, and many are thriving in a COVID world. Though full of challenges, it has also brought positive tailwinds for the adoption of digital platforms and services.

From a NEXTDC perspective, COVID-19 has ushered in the world’s single largest work from home experiment and continues to challenge and reshape our world.

How we connect today has dramatically accelerated the worlds digital transformation journey. As we emerge from COVID in a largely vaccinated world, so too will a return to the office and travel drive further accelerated change in a post COVID society.

Digital infrastructure is now intrinsic, not only to commerce, but also education, communities and lifestyle. Work has become an activity we do, and not necessarily somewhere we go.

The company was well-prepared for this rapid evolution and continues to respond and deliver the level of security, business continuity and disaster preparedness our customers expect.

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Regards,

Kiryll Prakapenka,

For Money Morning

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Kiryll Prakapenka is an investing autodidact who is passionate about conducting in-depth research on investments. Kiryll brings sound analytical skills to his work, courtesy of his Philosophy degree from The University of Melbourne. A student of legendary investors and their strategies, Kiryll likes to synthesise macroeconomic narratives with a keen understanding of the fundamentals behind companies.


Money Morning Australia