Category: Stock Market

The Fortescue Metals Group Limited (ASX: FMG) share price is racing higher on Thursday after the company released its June quarterly and full year FY21 update.

Shares in the iron ore major jumped 2.98% above yesterday’s closing price to a high of $26.58 in early morning trade. This topped its 8 January record high of $26.40.

The price has since eased back a little to be up 1.28% to $26.14 at the time of writing.

A record open for the Fortescue share price

It’s head above the clouds for the Fortescue share price after the company delivered record results across the board.

Fortescue revealed record iron ore shipments of 49.3 million tonnes for the quarter. This is a 4% increase on the prior corresponding period (pcp).

Shipments for the full year FY21 came in at 182.2 million tonnes, or 2% higher compared to a year ago.

Pleasingly, FY21 shipments have topped prior guidance of 182 million tonnes.

Sky high iron ore prices have not only propped up the Fortescue share price in the past 12 months but also translated to record average revenue.

According to the announcement, the company achieved US$168/dry metric tonne (dmt) for the quarter and US$135/dmt for the full year FY21.

From a cost perspective, C1 cost for the fourth quarter came in at US$15.23/wet metric tonne and US$13.93/wmt for FY21, in line with guidance.

The strong results produced a cash-on-hand position of US$6.9 billion and net cash of US$2.7 billion at 30 June 2021, compared to a net debt of US$1.0 billion at 31 March 2021.

Iron Bridge project update

Brokers have previously flagged the blowout costs from the Iron Bridge project as a potential drag on the Fortescue share price.

The quarterly update cited no changes in costs (US$2.5 billion to US$2.7 billion) with first production scheduled for December 2020 and a ramp-up period of 12 to 18 months.

FY22 guidance

Looking ahead, Fortescue is forecasting iron ore shipments of 180 to 185 million tonnes of iron ore at a C1 cost between US$15.00 to US$15.50/wmt.

FY22 capital expenditure is expected to land between US$2.8 billion to US$3.2 billion. This is inclusive of hub development, operational development, exploration and major projects (Iron Bridge).

Keep an eye on the Fortescue share price

While the quarterly update didn’t specify Fortescue’s financials, record iron ore shipments, record average revenue and costs in line with guidance all highlight what a strong year it’s been for the iron ore miner.

According to Fortescue’s half year results, the company’s dividend policy is to pay out 50% to 80% of full year net profit after tax, targeting the top end of the range.

Investors should keep an eye on the Fortescue share price when the miner reports its full year results on 30 August.

The post Fortescue (ASX:FMG) share price rallies 3% to record high after quarterly results appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Netflix (NASDAQ: NFLX) gave investors a lot to chew on in its second-quarter earnings report. The company beat its own guidance for subscriber additions, but it disappointed with lower-than-expected guidance for the third quarter. Management is guiding for 3.5 million paid subscriber additions in the current period, falling short of the 5.6 million analyst consensus. To top things off, Netflix also confirmed its plans to expand into video games.

The combination of weak guidance with the news of its entry into a new entertainment medium makes it seem the company is getting desperate for growth. But Netflix still has a long runway to expand, and this video game initiative makes sense for a few reasons.

Growth is slowing

There’s no question that as Netflix becomes a larger business, its year-over-year subscriber growth will gradually slow. The company now serves over 209 million paid subscribers,. Before the pandemic, Netflix’s year-over-year subscriber growth was gradually decelerating, falling from almost 26% at the end of 2018 to 20% the following year.

Still, the long-term opportunity in streaming is massive. Despite a decade of growth, all streaming services still have less share of TV time than traditional linear TV. The latter has a 63% share of total U.S. TV time, according to Nielsen, while all streaming platforms have a 27% share. Netflix’s share of TV time is even smaller at 7%.

As the company notes in its earnings report, “We are still very much in the early days of the transition from linear to on-demand consumption of entertainment.” And if Netflix can hit its third-quarter subscriber guidance (3.5 million net additions), it will have added enough subscribers over the last 24 months to maintain its pre-pandemic growth rate.

Some investors might still wonder about increasing competition and the impact it could have on Netflix’s ability to add new subscribers, but management believes if it can offer more content, growth should continue like it has for two decades.

And that brings us to gaming.

The reason for games

In that context, gaming doesn’t appear to be any more of a response to competition or slowing growth than Netflix’s move into original content in 2012. Netflix says it is early in its expansion into games, but they will be included at no extra cost to members and featured primarily on mobile devices. It’s basically another content category like animation and unscripted TV.

The company could emerge as a top developer on mobile platforms. It’s going to focus on making games that don’t require in-app purchases and ads, which run the risk of disrupting the gaming experience. In this way, Netflix could carve itself a unique position as a user-friendly platform that leads to increasing screen time among its members.

It doesn’t need to worry about charging for these games, because higher screen time and engagement should eventually pay off in the form of higher subscription revenue per membership. In the last quarter, Netflix saw its average revenue per membership increase 8%. This follows a 5% increase in the previous quarter.

The entry into games also signals Netflix’s improving profitability. It expects to reach free-cash-flow breakeven in 2021, and it no longer has a need to raise external financing to fund operations.

With its operating margin expected to reach 20% this year, the company can afford to invest in new opportunities without shortchanging itself on spending for original movies and series.

Looking at the big picture, this push into gaming could be the first step for Netflix to graduate from a pure-play streaming stock to a more broad-based entertainment company. Expanding its umbrella of opportunities should spell a wider competitive moat and more returns for investors.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Is Netflix’s move into gaming a sign its best days are over? appeared first on The Motley Fool Australia.

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John Ballard has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Netflix. The Motley Fool Australia has recommended Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Macquarie Group Ltd (ASX: MQG) share price is under a bit of pressure on Thursday.

In morning trade, the investment bank’s shares are down 0.5% to $155.83.

Why is the Macquarie share price in the red?

The Macquarie share price is trading lower today after the company released a first quarter update at its annual general meeting.

According to the release, trading conditions have significantly improved during the first quarter of FY 2022. This has led to Macquarie’s operating businesses delivering a net profit that was significantly up on the first quarter of the prior corresponding period.

The release explains that Macquarie’s annuity-style businesses, Macquarie Asset Management (MAM) and Banking and Financial Services (BFS), posted a combined first quarter net profit contribution slightly up on the same period last year.

This was primarily due to higher average volumes and lower provisions in BFS. This was partially offset by reduced contribution from MAM, where the absence of the gain on sale of the rail operating lease business was partially offset by the Macquarie Infrastructure Corporation (MIC) disposition fee.

Macquarie’s markets-facing businesses (Commodities and Global Markets (CGM) and Macquarie Capital) delivered a combined first quarter net profit contribution significantly up year on year.

Management advised that this was primarily due to the sale of the UK commercial and industrial smart meter portfolio which was partially offset by the timing of income recognition on storage and transport contracts in CGM. Macquarie Capital recorded significantly higher investment–related income.

Strong capital position

Macquarie ended the period with a financial position that continues to comfortably exceed the Australian Prudential Regulation Authority’s (APRA) Basel III regulatory requirements.

Its group capital surplus stood at $7.4 billion at the end of June. While this is down from $8.8 billion at the end of March, it equates to a strong CET1 ratio of 12.1%.

Dividends under pressure

The main drag on the Macquarie share price today appears to be comments around its dividend plans.

The release explains that the company intends to reduce its annual dividend payout policy range to 50% to 70%. This is to allow additional flexibility to support business growth and compares to its previous target range of 60% to 80%.

Outlook

No real guidance was given with today’s update. However, management spoke positively about its prospects over the medium term.

It commented: “Macquarie remains well-positioned to deliver superior performance in the medium term. This is due to our deep expertise in major markets; strength in business and geographic diversity and ability to adapt the portfolio mix to changing market conditions; an ongoing program to identify cost saving initiatives and efficiency; a strong and conservative balance sheet; and a proven risk management framework and culture.”

In the short term, it warned that its outlook could be influenced by a range of factors including COVID-19, potential tax or regulatory changes, and foreign exchange impacts.

The post Macquarie (ASX:MQG) share price lower after Q1 and dividend update appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Australian Pharmaceutical Industries Ltd (ASX: API) share price is in the red after it rejected Wesfarmers Ltd‘s (ASX: WES) takeover offer.

API announced this morning its board has rejected the offer, saying it’s not compelling or in its shareholders’ best interests.

Right now, the API share price is $1.40, 0.35% lower than its previous closing price.

Let’s take a closer look at the news out of API this morning.

Wesfarmers’ offer rejected

The API share price is down today after the company rejected Wesfarmers’ takeover offer of $1.38 cash per share.

The pharmaceutical, health, and beauty-focused company said Wesfarmers’ offer was at an 18.7% premium to API’s 3-month volume weighted average share price. It said that figure is “significantly below the Australian market average for transactions of this nature”.

Additionally, API’s board said the offer was opportunistic given the impact COVID-19 has had on API’s profits.

It also said it failed to take into account the strategic value of Priceline.

According to API, its expecting “substantial” growth in Priceline’s earnings as COVID-19 restrictions lessen and the impact of closing 9 loss-making stores take effect.

It also said Wesfarmers’ offer failed to take into account API’s investment into 39 Clear Skincare clinics and the savings expected from the development of the Marsden Park Distribution Centre.

Finally, it said it expects its pharmaceutical distribution business to get more funding from the 4 years remaining on API’s 7th Community Pharmacy Agreement, as well as its arrangement with Pfizer (which doesn’t include the COVID-19 vaccine).

The Wesfarmers share price is falling alongside that of API this morning.

Currently, shares in Wesfarmers are going for $61.25, 0.49% lower than their previous close.

API share price snapshot

API has been performing well on the ASX lately.

Right now, shares in API are trading for 11.9% more than they were at the start of the year. They’ve also gained 29% since this time last year.

The company has a market capitalisation of around $694 million, with approximately 492 million shares outstanding.

The post API share price (ASX:API) falls after rejecting Wesfarmers takeover offer appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Woodside Petroleum Limited (ASX: WPL) share price is climbing in early trade today. This comes after The Australian reported the oil giant was nearing a deal with BHP Group Ltd (ASX: BHP) to acquire its petroleum operations.

At the time of writing, Woodside shares are swapping hands for $22.30, a gain of 1.29%.

The latest news follows reports last week BHP was looking to exit the oil and gas business.

Let’s take a closer look.

Woodside wants some black gold

According to the report, Woodside will be looking to acquire the global portfolio of assets BHP holds in oil and gas. Previously, it was believed Woodside was only looking to acquire the Australian petrol assets of the mining giant.

The deal could be announced in 3 weeks, according to experts cited by The Australian. Both companies will be showcasing their end-of-year results on 17 August – the same time as the expected announcement.

Woodside and BHP are already joint-venture partners in a number of Australian oil and gas rigs, including a few in Western Australia.

The Australian, citing market analysts, says BHP’s entire oil and gas portfolio is worth about $20.4 billion. Given the current Woodside share price, that’s almost the equivalent of the entire company’s market capitalisation ($21.2 billion).

It is believed Woodside will pay for the prized assets using scrips that will be distributed to BHP shareholders.

In its most recent half-year results, BHP’s petroleum segment generated US $1.6 billion in revenue – down 34% on the prior corresponding period (pcp). Petroleum’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) was US $789 million – down 50% on the pcp.

In Woodside’s most recent full-year report, operating revenue was US$3.6 billion and underlying EBITDA was $1.9 billion. Both figures are down on the pcp.

Woodside share price snapshot

Over the past 12 months, the Woodside share price has increased 10%. The S&P/ASX 200 Index (ASX: XJO) has increased about 23% over the same time.

Only yesterday, the Woodside share price was on notice. This was a result of rumours the company was about to engage in mass job-cuts.

The post Woodside (ASX:WPL) share price rises as rumours swirl over BHP deal appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Qantas Airways Limited (ASX: QAN) shares are edging lower this morning. In early trade, the Qantas share price is falling 0.86% lower to $4.60. This comes amid reports the airline could be set to gain up to $500 million from the sale of land.

Numerous parcels totalling nearly 14 hectares are reportedly set to be sold. They’re situated in Sydney’s inner suburb of Mascot and some have been in Qantas’ hands since the 1960s.

Let’s take a closer look at today’s news of Qantas.

Land for sale?

The Qantas share price is failing to respond positively to news the airline could be planning to sell land in South Sydney’s industrial precinct.

According to The Australian, Qantas chief financial officer Vanessa Hudson said selling the land could help pay back some of Qantas’ debt.

Qantas reported net debt levels of $6.05 billion and a statutory loss (before tax) of $1.47 billion in its results for the first half of the 2021 financial year. The Qantas share price fell 1.96% after the company released its half-year results.

Hudson reportedly said some land values in Mascot are 4 times what they were 10 years ago. Despite this, around 40% of the 14 hectares is used for staff parking.

The property also houses the Qantas Mascot distribution centre. Qantas is said to be planning to lease the centre back from its future buyer.

Hudson was quoted by The Australian as saying: 

One thing that stood out from the property review we did earlier this year was the amount of undeveloped and underdeveloped land we hold around Mascot… Given how Mascot has developed over that time, there’s a lot of value we can unlock by selling it…

The proceeds would be used to help us pay down the debt we’ve built up getting through COVID, which in turn means we can start reinvesting sooner in things like new aircraft, things that are core to our business.

The publication also stated Qantas may sell all the land, or just some, depending on the market’s reaction.

Qantas share price snapshot

2021 hasn’t been a great year for Qantas on the ASX, amid persisting lockdowns and travel restrictions.

Right now, the Qantas share price is trading around 5% lower than it was at the start of the year. However, it has gained around 32% since this time last year.

The post Qantas (ASX:QAN) share price falls amid news of $500m land sale appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Facebook Inc (NASDAQ: FB) share price has taken a dip to the downside following its second-quarter results. Despite delivering a double on earnings and revenue, shares in the networking giant fell in after-hours trade.

At the time of writing, the Facebook share price is fetching US$373.28. However, shares dropped 3.56% to US$360.00 in after-hours trade.

Let’s delve into what the company shared with investors this morning that left them wanting more.

Growth at scale

While you wouldn’t pick it based on investor sentiment this morning, Facebook delivered impressive growth figures for its latest quarter.

According to the release, revenue surged by 56% year-over-year (YoY) to US$29.08 billion in the second quarter. A return to advertising spending led to a 47% YoY increase in the average price per ad. At the same time, the number of ads delivered increased.

Facebook managed to increase its operating margin by containing the lift in expenses. While revenues jumped, expenses climbed to a lesser extent with a 31% increase. As a result, income from operations more than doubled to US$12.37 billion. Impressively, the company’s margin expanded from 32% to 43%.

EARNINGS: Facebook Q2 EPS $3.61 vs. $3.03 Est.; Q2 Revs. $29.08B vs. $27.89B Est. • $FB https://t.co/UG0Sf1fKqF pic.twitter.com/z6JiHJyp9o

— CNBC Now (@CNBCnow) July 28, 2021

https://platform.twitter.com/widgets.js

Furthermore, analysts were forecasting earnings per share (EPS) of US$3.03. Shareholders can relish Facebook beating expectations with an EPS of $3.61. Another positive for the Facebook share price from the quarterly report.

Importantly, Facebook’s monthly active users have continued to grow. At the end of June, Facebook boasted MAUs of 2.9 billion, representing an increase of 7% YoY.

The Facebook share price dampener

It wasn’t all sunshine and rainbows from the company’s latest result. Investors have been rattled by the outlook suggesting a significant deceleration in growth rates for the third and fourth quarters. This is because Facebook will be comparing its revenue and earnings to previous quarters of strong performance.

Additionally, the company stated:

We continue to expect increased ad targeting headwinds in 2021 from regulatory and platform changes, notably the recent iOS updates, which we expect to have a greater impact in the third quarter compared to the second quarter. This is factored into our outlook.

Uncertainty appears to be the main fact impacting the Facebook share price overnight. Until there are more guarantees about what may happen next with regard to potential changes in policy and growth, investors could be wary.

The post Facebook (NASDAQ:FB) share price sinks on growth slowdown warning appeared first on The Motley Fool Australia.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Mitchell Lawler owns shares of Facebook. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Facebook. The Motley Fool Australia has recommended Facebook. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Atomo Diagnostics Ltd (ASX: AT1) share price has rocketed in opening trade today after the medical device company released its fourth-quarter results to the ASX.

At the time of writing, the Atomo share price is trading 9.30% higher at 23.5 cents apiece.

How did Atomo perform for the quarter?

The Atomo share price is soaring after the company reported a robust performance during the fourth quarter.

For the period ending 30 June, Atomo recorded cash receipts from customers of $717,000, bringing the full-year to $8.01 million. It’s worth noting that shortly after the close of Q4 FY21, a further $750,000 was received.

Sales represented a total of $6.7 million for the 2021 financial year, up by 25% when compared to FY20 ($5.4 million).

Atomo ended the quarter with a cash balance of $17.95 million.

Pleasingly, the company is expecting sales to expand rapidly in FY22, with key multi-year agreements secured with Viatris and Unitaid. HIV self-testing kits – designed and manufactured by Atomo – will be sent to 135 low and middle-income countries.

During late in the fourth quarter, the company received an initial order of 250,000 units under the Unitaid purchasing program. These products have since been shipped and delivered, with the majority of the order to be fulfilled in Q1 FY22.

To support the large order and potential future orders, Atomo has expanded operations at its South African facility. This includes additional assembly and packaging lines, as well as hiring and training further staff.

Across in the United States market, Atomo revealed that discussions with Access Bio were ongoing in relation to delivering its COVID-19 antibody test kits. Previously, Access Bio ordered 260,000 devices from Atomo, in part of the take-or-pay commitment of 2 million units by 30 September.

In Australia, interest has soared regarding Atomo’s COVID-19 rapid tests. The company has engaged with the Australian Aged Care market to develop its first aged care COVID-19 rapid antigen screening program.

Atomo share price summary

Despite the positive turn of events, Atomo shares have gradually trekked lower in the past 12 months, posting a 44% loss. In 2021 alone, the company’s share price is down around 30%.

Atomo has a market capitalisation of roughly $87.8 million, with more than 408 million shares on its registry.

The post The Atomo (ASX:AT1) share price has shot up 9%. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Wesfarmers Ltd (ASX: WES) share price is trading lower on Thursday morning.

At the time of writing, the conglomerate’s shares are down 1% to $61.01.

Why is the Wesfarmers share price trading lower?

The weakness in the Wesfarmers share price on Thursday has been driven by news that its takeover offer for Australian Pharmaceutical Industries Ltd (ASX: API) has been rejected.

On 12 July Wesfarmers tabled a $1.38 cash per share offer to acquire the pharmacy chain operator and distributor by way of a scheme of arrangement.

This morning Australian Pharmaceutical Industries announced that its board has carefully considered the proposal, including obtaining advice from its financial and legal advisers.

However, the Board has unanimously concluded that the proposal undervalues the company, is not compelling, and is not in the best interests of shareholders.

Why did it reject the offer?

The Australian Pharmaceutical Industries Board advised that it has undertaken a detailed analysis of the underlying value of the company. This includes assessing its medium and long term growth prospects and reviewing a range of scenarios in relation to its recovery from the impacts of COVID-19 and the related lockdown restrictions.

Following this, it believes Wesfarmers’ offer is opportunistic given the impact COVID-19 and lockdown restrictions have had on its financial performance over the last 18 months, and particularly on its retail facing businesses.

It also feels that its portfolio of complementary wholesale and retail businesses are strategically well positioned in the growing health, wellness, and beauty sector.

In addition, Australian Pharmaceutical Industries notes the potential of its investment in 39 new Clear Skincare clinics over the past three years since the business was acquired and the continued expansion of its clinic network.

Another factor it feels is being overlooked is the expected savings from completing the development of the new automated Marsden Park Distribution Centre by the end of FY 2022. This will allow the consolidation of its supply chain footprint.

Finally, the Board notes that the premium offered by Wesfarmers was significantly below the Australian market average for transactions of this nature.

It concluded: “Although API’s share price has recently traded above the price offered in the Indicative Proposal, the Board recognises that the share price may trade below this level in the short term. Nevertheless, the Board will only progress a change of control transaction on terms that recognise the fundamental value of API and are in the best interests of API shareholders as a whole.”

The Wesfarmers share price is up 19% in 2021.

The post Wesfarmers (ASX:WES) share price falls after API rejects takeover offer appeared first on The Motley Fool Australia.

More reading

• Own Wesfarmers (ASX:WES) shares? Here’s what to look for during reporting season
• 2 ASX shares to hold onto for the next 5 years
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• ASX 200 Weekly Wrap: Just like that… ASX back to record highs
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The NEXTDC Ltd (ASX: NXT) share price is pushing higher on Thursday morning.

At the time of writing, the data centre operator’s shares are up over 1% to $12.59.

Why is the NEXTDC share price rising?

The NEXTDC share price is rising today after the company achieved a major milestone in its long-term data centre development strategy.

According to the release, NEXTDC has secured a new data centre site in Western Sydney, named S4, for $124 million.

The release notes that S4 is a significant long-term expansion opportunity that will provide data centre services to hyperscale cloud providers in a new availability zone within the Sydney market not currently serviced by NEXTDC’s existing data centres (S1, S2 and the under development S3 centre).

The company also revealed that S4 will allow Enterprise and Government customers to scale their critical infrastructure platforms in this important digital gateway region.

The 124,000sqm site is in Horsley Park, approximately 42 kilometres west of Sydney’s central business district and close to a major electricity substation as well as telecommunications, utilities, and public infrastructure.

Subject to development approval, it is expected to accommodate a data centre facility capable of approximately 300MW of capacity, in addition to housing customers’ mission critical operation centres, administrative offices, and collaboration spaces.

The S4 centre is expected to generate more than 500 new jobs during the development phase over several years.

NEXTDC’s Chief Executive Officer and Managing Director, Craig Scroggie, said: “The demand for premium quality data centre assets in digital gateway regions such as Sydney continues to reflect the growth trajectory of technology infrastructure over the next decade. NEXTDC looks forward to being able to offer its customers dual availability zone solutions across its existing S1 and S2 Macquarie Park and S3 Gore Hill metropolitan data centres as well as this new S4 hyperscale campus in Western Sydney.”

The NEXTDC share price is up 13% over the last 12 months.

The post NEXTDC (ASX:NXT) share price pushes higher on Sydney expansion news appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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