INTELLIGENT BRANDS // Data Centers

Company expects data centers earnings before interest , taxes , depreciation and amortisation ( EBITDA ) alone to be between A $ 34 – 35m

IC3 Super West

Related CAPEX of $ 6m and Maintenance CAPEX of $ 3.4m .

Looking ahead , the company expects data centers earnings before interest , taxes , depreciation , and amortisation ( EBITDA ) alone to be between A $ 34 – 35m .

The company recently announced it received the green light for the construction of its largest data center , IC3 Super West , at its Sydney campus .

The AI-ready facility will optimise technology such as liquid cooling and monitoring systems and bring total IT load to a potential 63 megawatts .

Chairman Peter James said : “ This result represents our eighteenth consecutive half of EBITDA growth , a strong result underpinned by continued growth in cloud and cyber megatrends and the outstanding customer experience reflected in our high net promoter score .”

Key points

y Eighteen consecutive halves of profitable growth . y Revenue of $ 181.3m – an increase of 5.1 % on 1H FY23 ($ 172.5 million ). y Earnings before interest , tax , depreciation , and amortisation ( Group EBITDA ) of $ 53m – an increase of 3 % on 1H FY23 ($ 51.5m ). y Conversion of EBITDA to operating cash flows generated total operating cash flows of $ 49.5m during the half-year . y Funding of circa $ 86m available in the form of cash at bank and deposits – an increase since the end of the prior year due to positive operating cash flow . y Net profit after tax of $ 14.8m – an increase of 74 % on 1H FY23 ($ 8.5m ). y Capital expenditure for 1H FY24 was $ 18.5m million ( 1H FY23 : $ 33.2m ) driven by Growth CAPEX of $ 9.1m , Customer

Outlook

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Chief Executive David Tudehope said : “ We are pleased to have secured the IC3 Super West DA . With anticipated demand from the AI megatrend , we could increase the IT load of IC3 Super West from 38MW to 45MW . This would take the campus from 56MW to 63MW ( subject to regulatory and Board approval ). Access to 63MW of power is available upon opening of IC3 Super West .”

FY24 EBITDA is expected to be approximately $ 108 to $ 111m which includes Macquarie Data Centers EBITDA of $ 34 to $ 35m – continuing investment across the Group to drive future profitable growth . CS & G FY24 EBITDA margin is expected to be in line with FY23 . Telecom operational efficiencies in 1H FY24 to be maintained at the same EBITDA margin in 2H FY24 . Site preparation and early works are underway to prepare the Macquarie Park Data center Campus for IC3 Super West . Continue to explore the acquisition of sites to facilitate the growth plan of Macquarie Data centers , supporting the Sovereign focus for customer base . Debt refinancing to be undertaken in line with the requirements of the construction of IC3 Super West . Remaining undrawn debt facility of $ 190m has been extended . p

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