The NextDC Ltd (ASX: NXT) share price is lower at $6.42 today after the data centre operator held its AGM and provided a brief trading update.
For FY 2020 NextDC still expects to report adjusted EBITDA (operating income) between $100 million to $105 million on revenue between $200 million to $206 million. This would represent growth of 17% to 23% and 12% to 15% respectively on the prior fiscal year.
Thanks to the booming demand for date centre services as large enterprises create ever more data the company is also investing heavily to build new data centres in Sydney and Melbourne. The capital expenditure committed over FY 2020 is $280 million to $300 million.
NextDC reports it currently has a cash or cash equivalent balance of $399 million, before $300 million in bank debt facilities currently undrawn.
In other words it has a significant $699 million in callable liquidity to back up its aggressive data centre construction plans.
This has not stopped short sellers lifting bets on the shares falling though with 13.5% of the outstanding scrip shorted as at October 23, 2019.
Given the short selling interest and leveraged balance sheet as NextDc bets big on the future investors can expect more volatility in the shares.
