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GCX earnings up 88% in first half as it prepares for acquisition

Anja Blumert GCX CFO.jpg

Global Cloud Xchange, which is about to be bought by 3i Infrastructure, says it has reported strong financial results for the half-year ending 30 September.

The company, which went into Chapter 11 bankruptcy two years ago and then emerged, owned by its creditors, said it “continues to drive revenue growth while controlling expenses and repaying debt”.

Recurring earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the six months increased by 88% from the first half of 2021.

“GCX continues to focus on increasing profitability through retention and driving sales, while maintaining a disciplined investment approach,” said CFO Anja Blumert (pictured). “The company is well positioned in the coming quarters to grow leased bandwidth services based on a strong order book.”

3i Infrastructure agreed last month to buy 100% of GCX for US$512 million.

The company said that global demand for submarine network bandwidth and services continues to grow, “especially in emerging markets in the Middle East and Asia among others”.

CEO Carl Grivner said: “These first-half fiscal results demonstrate what our team continues to believe, that GCX has real value in our unique network assets.”

He added: “Our strategy and approach is preserving that value for our customers, and that is a big part of what prompted 3i Infrastructure to invest in the business. With that kind of support going forward, GCX is well positioned to explore new strategic partnerships to rejuvenate inventory, expand offerings, and grow our global footprint.”

GCX said cash EBITDA over the last 12 months was $95 million and the figure for the first half of the current financial year, April to September, was $51 million cash EBITDA. Recurring EBITDA for the six months increased by 88% from the first half of 2021.

London-based Blumert became CFO of GCX in July 2020. She is a former executive at Millicom and a former board member of Helios Towers.