Equinix records 22% rise in net income in Q2 2019

Maria Nikolova

Equinix reported net income of $144 million for the quarter to end-June 2019, up 22% over the previous quarter.

Global interconnection and data center company Equinix Inc (NASDAQ:EQIX) registered a jump of 22% in net income in the second quarter of 2019, according to the company’s latest financial report.

  • Revenues for the quarter to end-June 2019 amounted to $1.385 billion, marking a 2% increase over the previous quarter.
  • Operating income for the second quarter of 2019 totalled $292 million, up 4% over the preceding quarter.
  • Adjusted EBITDA amounted to $677 million, up 3% over the previous quarter.
  • Net income attributable to Equinix amounted to $144 million, marking a 22% increase over the previous quarter. Net income per share was $1.69, up 17% over the previous quarter.

For the third quarter of 2019, Equinix forecasts revenues in the range between $1.399 and $1.409 billion, an increase of 1% quarter-over-quarter, at the mid-point of guidance on both an as-reported and a normalized and constant currency basis, taking into consideration the net impact of the EMEA hyperscale joint venture. This guidance includes a positive foreign currency benefit of $8 million when compared to the average FX rates in Q2 2019.

Adjusted EBITDA in the third quarter of 2019 is expected to range between $665 and $675 million, including the higher seasonal cost of revenues, and includes a $4 million positive foreign currency benefit when compared to the average FX rates in Q2 2019 and $4 million of integration costs from acquisitions.

For the full year of 2019, total revenues are expected to range between $5.565 and $5.595 billion, up 10% over the previous year or a normalized and up 9% in constant currencies at the mid-point. This $10 million increase from previously issued guidance is due to $12 million of better than expected operating business performance and a $5 million positive foreign currency benefit when compared to prior guidance rates, offset in part by a $7 million reduction from the net impact of the EMEA hyperscale joint venture.

Adjusted EBITDA for the full year is forecast to range between $2.660 and $2.690 billion, an adjusted EBITDA margin of 48%. This $15 million increase from previously issued guidance is due to $19 million of better than expected operating business performance, a $2 million reduction of integration costs and a $1 million positive foreign currency benefit when compared to prior guidance rates, offset in part by a $7 million reduction from the net impact of the EMEA hyperscale joint venture.

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