The Macquarie Technology Group Ltd (ASX: MAQ) share price is down 5.38% to $82.32 on Thursday despite the company reporting its 10th consecutive year of earnings growth in its FY24 results.
Macquarie Tech released its numbers last night, and the stock opened 1.3% lower at $85.87 today.
Things got worse from there, with the Macquarie Tech share price cascading to an intraday low of $80.60, down 7.35%, within the first 20 minutes of trading.
For perspective, the S&P/ASX All Ordinaries Index (ASX: XAO) is currently down 0.5%.
Let's check out Macquarie Tech's numbers.
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Macquarie Tech share price loses 7% despite revenue gains
Here are the key numbers for FY24:
- Revenue of $363.3 million, up 5.3% on the prior corresponding period (pcp) of FY23
- Group earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $109.1 million, up 5.8% pcp
- Net profit after tax (NPAT) of $33 million, up 86.5%
- EBITDA margin for 30%, up 0.1% pcp
- Conversion of EBITDA generated total operating cash flows of $117.8 million during the year
- EBITDA compound annual growth rate (CAGR) of 13.9% over the past three years
- Net tangible assets per security of $17.02, up from $12.36 in FY23
- No dividend declared
What else happened in FY24?
Macquarie Tech has four core businesses — cloud services, government, data centres, and telecom.
Macquarie Tech's wholly-owned subsidiary, Macquarie Data Centres (MDC), is one of the world's most certified data centre operators. MDC is used by nearly half of all Australian Government agencies.
In FY24, the company completed the acquisition of 17-23 Talavera Rd, Macquarie Park for $174 million plus transaction costs, including a $90 million loan note from the vendor.
It conducted a successful institutional investor capital raise of $100 million to support the acquisition.
What did management say?
Macquarie Tech chair Peter James said the company's 10th consecutive year of EBITDA growth was underpinned by the consistent execution of its digital infrastructure strategy.
CEO David Tudehope added:
The acquisition of the Macquarie Park Data Centre Campus land, along with the $100 million equity raise, has positioned us for the growth of our digital infrastructure platform for the years ahead.
What's next for Macquarie Tech?
Macquarie Tech said it expected continuing EBITDA growth in FY25.
Due to demand from the AI megatrend, the company is looking to increase the IT load of its IC3 Super West from 38MW to 45MW.
This increase would take the whole campus from 56MW to 63MW, subject to regulatory approval.
IC3 Super West will be the third and largest data centre at the Macquarie Park data centre campus. The Independent Planning Commission of NSW granted it 'state significant' status in January.
Macquarie Tech expects construction of Phase 1 of IC3 Super West to be completed by 3Q 2026. The construction cost will be about $350 million.
In its statement, the company said:
Our data centre assets have been aligned into a new corporate structure to facilitate future growth and external funding opportunities.
We are investing in our capabilities to support the growth in the Macquarie Data Centres platform.
Macquarie Tech is now seeking to acquire another new campus in Sydney.
Macquarie Tech share price snapshot
The Macquarie Tech share price has risen by 21.9% in the year to date, while the ASX All Ords has risen 4.98%.
