Brisbane-headquartered Megaport reports $4.4m half-year revenues, continues expansion

Brisbane-headquartered Megaport has expanded its data centre reach around the world and posted revenues of $4.4 million, as well as a $13 million net loss, for the half-year ending 31 December 2016.

In order to finish the financial year with better results the company said it would focus on revenue growth with "prudent cost management" to deliver a considerable reduction in cash burn. The company's cash position was $24.2 million at the end of December 2016.

The total number of the company's services, which is comprised of ports, virtual cross connections and internet exchange, increased 194 percent to 2768, up 1828 from the same period last year.

The group completed the acquisition of Germany's second largest internet exchange, Peering GmbH, in August 2016, expanding Megaport to an additional 30 locations across two countries.

The company has a presence in 19 countries through 141 data centres and 621 customers.

Megaport was established by NextDC founder Bevan Slattery in 2013. Megaport doesn't own networks, but rather leases ethernet capacity from other providers, such as the carriers, to provide its customers with contract-free access to high-speed network connectivity.

Vincent English, Megaport's chief operations officer, said: "This half-year has been a marked leap forward for Megaport. Put simply, more customers are connecting to more cloud services across the Megaport SDN. Our monthly recurring revenue has increased by 311 percent in the last year, a result of acquisitions and accelerating customer adoption of Megaport services in our organic markets as demand continues to grow.

"Our valued partners and the channels they enable bring to bear significant sales and marketing resources focused on selling Megaport’s services around the globe. Partnering with Digital Realty, Seaborn, CyrusOne, and others enable us to reach more customers while minimising costs and improving speed to market."

Last week, chief executive Denver Maddux resigned from his position but will remain on the board of Megaport as a strategic advisor.

Maddux joined the company in September 2014. He had worked for Global Crossing, Limelight Networks and was Microsoft's senior director, strategic and planning, GNS prior to joining Megaport.

COO English is expected to step into the chief executive role.