Equinix half way to $6bn revenues, tops $17bn in capital expenditure
Provider posts 2016 revenues with announcement of $175m for global expansion and the introduction of Salesforce into the company’s Cloud Exchange.
The world’s largest colocation data centre provider Equinix has reported revenues in the excess of $3.6bn bringing the company closer to its goal of topping $6bn revenues by 2020.
The revenues represent a 33% increase over 2015 ($2.75bn) with the acquisition of Telecity and Bit-isle accounting to $549m of the revenues, $400m and $149m respectively.
The Americas region accounted to the majority of the revenues at $1.67bn (2015: $1.51bn). However, it was in EMEA that business grew the most.
In 2015, the company reported revenues in EMEA of $698m. For the full year of 2016, this has increased nearly by 68% to $1.17bn, partially boosted by Telecity’s acquisition which expanded Equinix’s portfolio in the region.
In the APAC region, the operator has also seen a growth in revenues from $514m revenues in 2015 to $761m.
Globally, operating income for FY16 has grown 9% to $619m, net income fell to $114m (2015: $187m), gross profit was $1.79bn (up from $1.43bn in 2015) and capital expenditure amounted to $1.1bn.
Overall, since its foundation in 1998, Equinix has invested more than $17bn to build its global fleet of data centres.
Looking at 2017, although Equinix has grown its revenues by 33% from 2015 to 2016, the company forecasts that in 2017 it will grow revenues by 9% to $3.9bn.
The market can also expect further build outs and acquisitions as the company announces it expects to mirror its capital expenditure budget in 2017 which is predicted to range between $1.1bn and $1.2bn.
Steve Smith, CEO of Equinix, said: “2016 was a pivotal year for Equinix. We continued to capture the shift to the cloud, expand our global reach and scale, grow interconnection, and deliver record bookings and increasing shareholder returns.
“We are operating at the intersection of some of the greatest technology trends in our lifetime, and the digital transformation driven by cloud services is shifting compute, storage and networking to the edge, which plays into our dense ecosystems and global scale.
“We look forward to a busy 2017 as we integrate our acquisitions, grow our global platform, enhance our portfolio of services and increase our reach and relevance to the cloud-enabled enterprise.”
In addition to the financial results, Equinix has also announced a $175m expansion plan to increase its footprint in Amsterdam, Chicago, Dubai, Rio de Janeiro and Toronto.
The company has currently 19 publicly announced expansion projects underway in the Americas, EMEA and APAC regions.
Furthermore, Equinix has introduced direct and private access to the Salesforce platform via Equinix Cloud Exchange in markets across North America and Europe.
Bill Long, VP of interconnection solutions at Equinix, said: “By providing customers with dedicated connectivity to their Salesforce environments simply, securely and cost-effectively from Cloud Exchange, we help them connect and build a hybrid cloud solution that works for them.”