Macquarie Telecom posts revenue increase but net profit dips
Macquarie Telecom Group Ltd (ASX: MAQ) saw revenue increase by 8% in the 2020 financial year, with chairman, Peter James, crediting a “track record of delivery” and long-term investments with driving the growth.
EBITDA increased 25% on the previous year to reach AU$65.2 million, generating operating cash flows of $45.9 million during the year, including payment of income tax. However, net profit after tax (NPAT) was down 17.5% to $13.5 million post AASB16.
Chairman Peter James said: “The 2020 full year results have delivered six consecutive years of strong performance and EBITDA growth. These results are evidence of our track record of delivery and investment which will provide a long runway of significant growth opportunities.”
Among those investments is IC3 (pictured), the Sydney facility expansion project that broke ground in December 2019, and the IC5 Bunker in Canberra, announced in June.
Chief executive David Tudehope said: “The development of IC3 and IC5 Bunker will expand our Macquarie Data Centre’s projected capacity from 14MW to 50MW enabling it to strongly compete for wholesale customers. The IC3 development further supports our commitment to our wholesale partners. The IC5 Bunker development will provide our Government customers with additional cyber security and cloud capacity.
“We anticipate strong growth given our experience in delivering to the government sector leveraging our strict security certifications and the breadth of our sovereign service offering,” he added.
On capex, Macquarie Telecom Group closed the year at $65.9 million, a jump on 2019’s $45.8 million it said was driven by growth capex of $14.8 million. This accumulated across the Fortune 100 Customer Stage 3 and Data Hall 4 fit out, NBN migrations and the previously mentioned IC3 and IC5.
Customer related Capex was $38.8 million, “reflective of our continued hosting sales success and product mix”. Maintenance Capex was $12.3 million.
Tudehope continued: “Our outstanding customer experience as measured by a Net Promotor Score of +72 has been even more important to our customers as they rely to a greater extent on telecom and cloud services as their staff are predominantly working from home as a result of Covid-19.”