Reseller News

Infratil's investment in Canberra Data Centres pays off handsomely

CDC and other investments more than make up for impact of COVID-19
  • Rob O'Neill (New Zealand Reseller News)
  • 12 November, 2020 06:46
Marko Bogoievski (CEO of Infratil) and Jason Paris (Vodafone)

Marko Bogoievski (CEO of Infratil) and Jason Paris (Vodafone)

Vodafone NZ and Canberra Data Centres investor Infratil is making hay from its pivot to digital infrastructure asset ownership.

Infratil today announced its interim half-year results for the six months ended 30 September 2020, reporting proportionate EBITDAF up $25.4 million, or 12.4 per cent, to $229.5 million reflecting strong performance from CDC Data Centres and significant contributions from Vodafone New Zealand and Trustpower. 

The results for the period were impacted by portfolio changes including the acquisition of Vodafone New Zealand in 2019, and the sale of Perth Energy, NZ Bus, and the ANU Student Accommodation business in 2019 among others.

Proportionate EBITDAF for the year to 31 March 2021 is forecast to be between $430 million and $470 million, including an estimated $80 million reduction caused by Covid-19 related restrictions, compared with $446 million the previous year.

Infratil reported a surplus from continuing operations of $27.8 million compared with $56.4 million for the prior year.

The company said the period illustrated the benefits of Infratil’s diversification (see chart below), where the progress at CDC Data Centres and the renewable generation projects of Tilt Renewables and Longroad Energy more than balanced the impact of the Covid-19 crisis on businesses such as Wellington Airport and Vodafone New Zealand.

Between 31 March 2020 and 11 November 2020, Infratil's share price has risen from $3.91 to $5.40.

The value of Infratil’s holding in CDC Data Centres rose $324 million over the six months. Infratil's share of current period reported EBITDAF of A$73.8 million, was up A$22.1 million (+42.7 per cent) from the comparative period.

Continued strong performance with revenue growth from new datacentres and additional stages in existing facilities allowed Infratil to forecast 2021 EBITDAF of A$145-A$155 million.

Multiple drivers were underpinning CDC's growth, including increased demand for resilient digital infrastructure and significant growth as Covid-19 accelerated the transition to remote working and adoption of cloud -based services.

Vodafone NZ, meanwhile, advanced its plans to simplify its business and improve its customers’ experience, but also saw earnings reduce by $29 million due to COVID-19.

Infratil's investment portfolioCredit: Supplied
Infratil's investment portfolio

Infratil also published a climate change position statement committing to the goal of reducing greenhouse gases and providing transparency about policies, goals, costs and risks.

During the period, CDC Data Centres commissioned 28MW of datacentre capacity at Eastern Creek in Sydney, started construction of two 10MW datacentres in Auckland, and progressed further expansion plans in Australia.

Vodafone NZ progressed its investment in 5G mobile network infrastructure and upgraded its international fibre links.

The telco's simplification programme saw 1500 products retired or improved. A 34 per cent increase in customer requests dealt with first time was accompanied by a large reduction in customer complaints.