Issuer Overview
NEXTDC is an ASX200-listed technology company enabling business transformation through innovative data centre outsourcing solutions, connectivity services and infrastructure management software.
As Australia’s leading independent data centre operator with a nationwide network of Tier III facilities, NEXTDC provides enterprise-class colocation services to local and international organisations. With a focus on sustainability and renewable energy NEXTDC is leading the industry with award-winning engineering solutions for energy efficiency and NABERS 4.5 star certification.
NEXTDC is extending its leadership in data centre services through the innovative DCIM-as-a-Service software platform, ONEDC®, which enables customers to centrally manage their on-premise and co-located infrastructure; and advanced connectivity services that deliver a range of secure, high- speed interconnections between racks, networks and cloud services.
NEXTDC’s Cloud Centre is the online marketplace for the country’s largest independent network of carriers, cloud and IT service providers, enabling customers to freely source best of breed suppliers within the NEXTDC Partner community
Key Information
- Market capitalization: $2.76billion
- Drawn Debt at 31 December 2019 was $796 million.
- NextDC ‘s financial results for the half year ended 31 December 2019 have been reported as follows:
- Revenue up 8% to $98 million (1HY19: $91 million)
- Underlying EBITDA up 21% to $51million (1HY19: $42 million)
- Cash of $197 million at December 31 2019
At 31 December 2019, NEXTDC had an undrawn $300 million Syndicated Senior Secured Debt Facility due for maturity on 30 September 2022.
Risks
An investment in NextDC is subject to the following Specific Risk Factors:
Data Centre utilization risk, reduction in demand for data center services risk, security risk, development risk, customer contracts deliverable failure, infrastructure and technology failure; maintaining supply and pricing of utilities at acceptable costs to satisfy demand requirements and any breach or termination of the long term leases held by NextDC leases could have a material adverse impact on NextDC.
Such investment is also subject to general risks including those related to general economic conditions, availability of funding, refinancing requirements, share price volatility, interest rates, debt covenants, financial distress of customers, attracting and retaining employees, health, safety and environment issues, litigation and disputes, financial forecasts, regulatory issues, changes in law, changes in accounting policy and standards, taxation implications, insurance issues, force majeure, counterparty risk, intellectual property risk and reputational risk
NextDC is exposed to a range of other risks including those relating to the refinancing of existing debt instruments and facilities, securities price risk, lack of liquidity in the bonds/notes risk, interest rate risk, insurance coverage risk, debt covenant breach risks, loss of key management personnel risk and litigation or dispute risk, regulatory issues and changes in law It is also subject to the usual business risk that there may be changes in accounting.