21Vianet Group reports 27% increase in 2020 revenues to $183.5m
21Vianet Group, Inc. (Nasdaq: VNET) announced its unaudited financial results for the third quarter ended September 30, 2020.
The company’s net revenues increased by 27.0% to RMB1.25 billion ($183.5 million) from RMB981.0 million in the same period of 2019.
The company revealed its total cabinets under management net increased by 7,426 to 51,476 as of September 30, 2020, compared to 44,050 as of June 30, 2020, and 32,116 as of September 30, 2019.
The company’s compound utilisation rate improved to 64.2% from 61.4% in the second quarter of 2020.
“We are pleased to announce that we delivered a strong performance in the third quarter of 2020 as a result of our dual-core growth strategy, competitive IDC solutions for both retail and wholesale customers, and on-track delivery schedule,” said Alvin Wang, Chief Executive Officer and President of the company.
“Moreover, in recognition of the IDC industry’s steady growth trajectory in China, we continued to work towards better positioning ourselves for long-term growth. Firstly, to further bolster our IDC pipeline in the surrounding areas of tier-one cities, we secured two separate IDC resources to the immediate east of Beijing, adding around 50MW in total capacity to this key area.
“Furthermore, we secured an additional 140MW of IT power to be used in the expansion of our Jiangsu Campus over the next three to five years. Secondly, we announced the launch of our management rotation program, which will take effect in the coming year and help us to develop more internal synergies and cross-functional expertise.
“Thirdly, we developed our 2021-2023 Three-Year Growth Plan to accelerate our future expansion and further optimise our dual-core growth strategy. Looking ahead, we are confident that such measures will serve to sustain our growth momentum, enhance our operations, and unlock more value throughout China’s IDC industry over the long term.”
Utilisation rate for mature IDCs delivered prior to 2019 improved to 77.0% in the third quarter of 2020 from 73.6% in the second quarter of 2020, according to the company.
“We concluded the third quarter of 2020 with solid financial results as our revenues were within our previous guidance range and our adjusted EBITDA exceeded the high end of our guidance range,” said Sharon Liu, Chief Financial Officer of the company.
“In the meantime, we also continued to improve our margins. Our strong financial growth reflects both our continuous cabinet expansion and improved utilization rates.
“To date, we have already delivered more than 15,000 cabinets in total since the beginning of this year. Our strong balance sheet, ability to secure cost-efficient financing sources, and endorsement from well-established investors in the IDC industry continue to showcase the strength of our financials and our preparedness to capitalise on new growth opportunities.
“Going forward, we remain confident in our ability to reach our development goals, continue increasing our market share, and deliver lasting value to our shareholders in turn.”