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March 3, 2016updated 05 Sep 2016 7:55am

Interxion posts strong Q4, plans €50m data centre expansion in Europe

News: Company’s revenues increase 13% yoy with capital expenditure in 2016 expected to top €200m.

By Joao Lima

European colocator Interxion is set to expand across Europe, as it posts 2015 full-year revenues of €386.6m.

The company posted a strong Q4 in 2015, with revenues increasing 12% to €100.7m from Q4 2014’s €89.9m.

Recurring revenue was €95.1m in Q4 2015, a 14% increase over Q4 2014 and a 3% increase over the Q3 2015. Recurring revenue in the quarter was 94% of total revenue, while Net profit in Q4 2015 rose by 64% to €12.1m (Q4 2014: €7.4m). Gross profit was €61.4 million in Q4 2015, a 16% increase over Q4 2014 and a 3% increase over the Q3 2015.

Capital expenditure dropped to €42m in Q4 2015, compared to the €47.8m reported in Q4 2014.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to €44.9m in Q4 2015, up 16% from Q4 2014’s €38.7m.

Full year (FY) 2015 revenues were up 13% to €386.6m when compared to the €340.6m reported for FY 2014. Interxion’s net profit increased 38% to €48.6m, from the €35.1m reported for 2014. Gross profit increased 17% from FY 2014 to €234.9m.

Capital expenditures decreased to €192.6m for the FY 2015 (FY 2014: €216.3m).

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The company said that over 90% of capital expenditures (€175.7m) were spent on expansion and upgrade projects, with the remaining €16.9m invested in maintenance, IT and intangible investments.

EBITDA rose to €171.3m in FY 2015, 17% up on FY 2014 €146.4m.

According to Seeking Alpha’s transcript of the company’s earnings call, Josh Joshi, CFO at Interxion, said that the company is seeing "60% to 70%, sometimes 80% to 90% of our new business coming from existing customers".

For 2016, the company expects revenues to be between €416 and €431m with an EBITDA of between €185m and €195m.

Interxion is also planning to increase capital expenditures to €200-€220m, with over 12,000 sqm of commercial data centre floor space set to come online.

European expansion plans to bulk colo portfolio

Following the results, the company announced it will invest up to €50m to expand facilities in Vienna, Dusseldorf, Paris and Marseille, adding nearly 3,900 sqm of commercial space and 5MW of power.

Currently at 4,700 sqm, the Vienna VIE2 hub in Austria will add nearly 1,400 sqm of commercial flooring and 3MW once the VIE2.6 expansion phase is completed by Q3 2017.

According to Interxion, the build-out in the Austrian capital is the largest investment of the four projects at €23m.

In Dusseldorf, Germany the colo will construct the second phase of its DUS2 data centre, DUS2.2, adding approximately 600 sqm of equipped space and is scheduled to become operational in Q22016.

The project has a cost of approximately €3 million, and will expand the site to a total capacity of 3,400 sqm.

In Paris, France, Interxion will expand its 17,800 sqm PAR7 data centre through a phased build, PAR7.2, adding approximately 1,100 sqm of additional capacity.

This phase is scheduled to become operational in the second quarter of 2017. The capital expenditure associated with the initial phase of PAR7.2 is expected to be approximately €14 million.

In Marseille, France the company will increase capacity at its MRS1.2 hub in addition to 900 sqm added in 2015. The expansion is expected to provide approximately 800 sqm of equipped space and more than 1 MW of customer power. When fully built, the site will be 5,700 sqm with over 10 MW of power.

The capital expenditure associated with MRS1.2 is expected to be approximately €10 million.

Adriaan Oosthoek, SVP for IT and operations support at Interxion, told CBR that the Marseille site is a landing point for a number of subsea cables coming from both East and West and connects into the Middle East in Africa.

He said the site assumes critical importance as "a lot of players that want to serve end use customers in Africa and the Middle East often do not want to put lots of hardware and capital into those locations because they are frequently not politically stable".

David Ruberg, Interxion’s CEO said: "These four expansions represent a diversity of demand with strength in cloud, connectivity, financial services and digital media."

Interxion’s European expansion follows news from global player Equinix who yesterday announced $420m in investment to expand in four continents.


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