Australian network-services provider, Megaport, has reported a remarkable 80% reduction in its annual loss and anticipates a substantial increase in earnings for the coming year.
In the 12 months ending June, the ASX-listed company recorded a net loss of 9.8 million Australian dollars (US$6.3 million), significantly better than the net loss of A$48.5 million in the previous year. Notably, revenue experienced a significant surge of 40%, reaching A$153.1 million.
Megaport specializes in assisting businesses in connecting their networks to cloud services offered by major tech giants like Amazon, Microsoft, and Google. Despite its positive financial performance, the company did not declare any dividends.
According to data compiled by FactSet, the average analyst forecast projected a net loss of A$15.7 million with revenue of A$153.1 million. Megaport attributes its improved financial performance partially to a 2.4% reduction in annual operating costs.
The company's earnings before interest, tax, depreciation and amortization (EBITDA) stood at A$25.2 million, and Megaport expects this figure to escalate further to between A$51 million and A$57 million in fiscal year 2024. Additionally, the company foresees its revenue rising to a range of A$190 million to A$195 million during the same period.
It is worth mentioning that industry analysts had already predicted that Megaport would turn profitable in fiscal year 2024.
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