Macquarie Data Centres is expecting a strong uptake in its cyber security, cloud and government business.
The company sees strong demand for cyber security solutions in its Government and Cloud Services businesses and will be making significant investments in FY22 to realise this opportunity, Macquarie said in its financial year 2020-21 earnings.
“We announced plans for IC3 Super West – a new data centre which takes the Macquarie Park Data Centre Campus to 50MW IT load over time. This global scale data centre campus will attract new investment into Australia from multinationals looking to expand in the Asia Pacific region,” the company added.
Chairman Peter James said, “The 2021 full year results delivered the seventh consecutive year of EBITDA growth underpinned by our strategy of investing in data centres, cloud & cyber security, including the recent announcement of our new IC3 Super West development, which will provide significant customer growth opportunities in the future.”
Full year revenue of $285.1 million, an increase of 7 per cent compared to $266.2 million for FY20. Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $73.8 million, an increase of 13 per cent from prior year. This marks, seven consecutive years of EBITDA growth.
Chief Executive David Tudehope said, “IC3 East (Phase 1) was successfully delivered on budget in FY21, and we announced plans for IC3 Super West – a new data centre which takes the Macquarie Park Data Centre Campus to 50MW IT Load over time. This global scale data centre campus will attract new investment into Australia from multinationals looking to expand in the Asia Pacific region.
“We have decided to increase our investments in Cyber Security, people and technology, to benefit from the increasing demand for business and government to uplift their security defences.
“We will continue to develop public cloud capability to enhance the current hybrid cloud offering,” the company said. Macquarie plans to make further investment in growth and customer growth capex during FY22. Total capex is expected to be between $121 to $133 million.
Macquarie Data Centres has completed work on the Intellicentre 3 East data centre development (“IC3”), drawing down $84.0 million of the debt facility this financial year. At 30 June 2021, there is a closing cash balance of $19.8 million and undrawn debt facilities of $58.0 million.
Capital expenditure for FY21 was $139.1 million (FY20: $64.1 million) driven by growth capex of $103.6 million primarily relating to investment in IC3 East in Macquarie Park and IC5 South Bunker in Canberra. Customer related Capex was $21.8 million. Maintenance Capex was $13.7 million.
Macquarie’s EBITDA will continue to grow in FY22, company officials said. Due to investments being made in Data Centres and Cloud Services & Government the EBITDA growth will be in second half of FY22.
New investment areas
In the first half of 2022 financial year, Macquarie Data Centres will invest in new staffing and technology ahead of revenue from our leading corporation contract win. Billing is due to start shortly after completion in second half of FY22.