What happened to the NEXTDC share price?
Shares of NEXTDC [ASX:NXT] gained over 12% today.
Why did NXT shares rise?
NEXTDC has published its half-year results ended 31 December 2016. Revenue is up 39% to $58.7 million, and the company reported a jump in net profit to $19.3 million.
CEO Craig Scroggie told the Australian Financial Review there are two factors driving growth:
‘Firstly, we’re continuing to see very strong adoption of the public and private cloud from hyperscale providers to the local providers building their own software-as-a-service solutions. The second factor is continued strong demand from people moving out of old legacy data centres and moving into tier three co-location facilities. You can see that from our enormous growth in interconnection revenue too.’
NETXDC is a technology company that provides pay as you go consumer software and cloud computing. The company is planning on investing between $260 million and $340 million to expand.
Commenting on the half year results, CEO Mr. Scroggie said, ‘FY17 is the biggest year in NEXTDC’s history, with planned capital investments of more than $250 million. We are developing three new world class hyperscale data centres to take advantage of the unprecedented demand for cloud and enterprise colocation.’
The data centres will be located in Melbourne, Brisbane and Sydney, and the company does not rule out expanding off shore.
What now for NEXTDC?
For FY17 the company expects revenues to grow from $92.8 million in FY16 to hit between $115 and $122 million in FY17.
By Selva Freigedo