Megaport ‘fit and focused’ for a break-even result this year
The global surge in demand for internet services means Brisbane’s Megaport would reach break-even by June this year.
The internet connection company, founded by tech guru Bevan Slattery, said its break-even would be on the basis of earnings before interest and other items and on a run rate basis.
The run rate refers to the financial performance of a company based on using current financial information as a predictor of future performance.
Chief executive officer Vincent English said the company was in an excellent position to drive substantial growth and a robust finish for the financial year.
However, its quarterly cash flow report showed receipts from customers for the third quarter was $20.2 million, down 22 per cent from its record high for the previous three-month period.
English has written to shareholders to tell them the forecast break-even would represent a $25 million turnaround.
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He said Megaport had already achieved a full quarter’s positive cash flow from operations early in the second quarter and delivered a 43 per cent increase in monthly recurring revenues.
“In the past 12 months, Megaport as a company, has become fit and focused while demonstrating its capability to generate strong cash flows from the existing platform,” English said.
