Australia's NEXTDC tumbles to 9-year low on forecast cut

NEXTDC

Wed 05:00

Updates with comment
** Shares of NEXTDC NXT.AX fall as much as 44.8% to A$5.070, their lowest level since November 14, 2017
** Data centre operator cuts FY27 net revenue forecast to between A$475 million ($333.02 million) and A$500 million, from A$615 million to A$640 million, excluding affected M3 contracts
** Co also cuts its 2027 EBITDA forecast to between A$245 million and A$265 million, from A$385 million to A$410 million, excluding affected M3 contracts
** Co lowers FY27 capex outlook to range of A$4.5 billion to A$5 billion, down from A$5.25 billion to A$5.75 billion
** Referring to NEXTDC, Hebe Chen, market analyst at Vantage Markets, says strong demand means little for near-term earnings if infrastructure bottlenecks prevent that demand from translating into revenue
** NXT's fall drags tech index .AXIJ 6.1% lower, putting it on track for worst day in more than six months
** Stock down 55.2% YTD, AXIJ down 25.4%

($1 = 1.4263 Australian dollars)

 (Reporting by Sherin Sunny, Keshav Singh Chundawat & Aamir Sheik Khalid in Bengaluru)
 ((Sherin.Sunny@thomsonreuters.com))