Macquarie Technology Group (MAQ) H2 2024 earnings summary

Executive summary

• Achieved revenue of $363.3m and EBITDA of $109.1m for FY24, marking ten consecutive years of EBITDA growth and a 13.9% three-year EBITDA CAGR.

• NPAT reached $33.0m with EPS of 134.7 cents; 95% of revenue is contracted monthly recurring revenue.

• Completed $174m acquisition of Macquarie Park land/buildings and raised $100m in capital; undrawn debt facility of $190m strengthens balance sheet.

• Recognized as a top workplace and for exceptional customer experience, with an NPS of +83 in FY24.

• Results for the year ended 30 June 2024 were in line with guidance.

Financial highlights

• Group revenue grew 5.3% year-over-year to $363.3m; EBITDA up 5.8% to $109.1m; EBITDA margin at 30.0%.

• EBIT increased 34.1% to $51.1m; NPAT up 86.5% to $33.0m compared to FY23.

• Operating cash flow was $117.8m, with 104% EBITDA conversion to cash.

• Capital expenditure was $51.1m before the Macquarie Park acquisition.

• Depreciation and amortisation decreased 10.8% to $58.0m; interest expense fell 69% to $3.9m.

Outlook and guidance

• EBITDA expected to grow in FY25, marking 11 consecutive years of growth.

• Revenue and EBITDA growth in Cloud Services & Government to slow in FY25 due to US tech vendor price increases; mitigation underway via new contracts and vendors.

• Data centre IT load at IC3 SuperWest to increase from 38MW to 45MW, with campus total to 63MW pending regulatory approval.

• FY25 depreciation/amortisation forecasted at $49m–$54m; total capex (ex-IC3 SuperWest) at $34m–$40m, with IC3 SuperWest capex at $110m–$130m.

• Phase 1 construction of IC3 SuperWest to be completed by Q3 2026, delivering 6MW of IT load.