Data centre operator Equinix has lifted its dividend to USD 2.87 from 2.66 per share and is guiding for a stronger 2021 after reporting better-than-expected EBITDA results for the fourth quarter and full-year. The company said it delivered record channel bookings in the quarter, accounting for over 35 percent of total bookings, and that it continued to expand its platform, building across 44 projects in 30 markets, and 20 countries.
Revenues for the quarter rose to USD 1.564 billion from 1.519 billion in the previous quarter and 1.417 billion the year before. Operating expenses also rose, to USD 504.7 million from 463.4 million in Q3 and 378.5 million the year earlier, putting the operating profit at USD 228.6 million, off from 288.3 million on a sequential basis and 312.9 million year-on-year. The adjusted EBITDA amounted to USD 711.4 million, from 675.8 million the year before while the net profit fell to USD 50.9 million from 124.9 million, with diluted earnings per share sliding to USD 0.57 from 1.46 year-on-year. AFFO and diluted AFFO per share grew year-on-year to USD 516.9 million and USD 5.76, from 472.6 million and 5.51, respectively.
For the full year, revenues increased 8 percent year-on-year to USD 5.999 billion. The operating profit declined 10 percent to USD 1.053 billion but the adjusted EBITDA went higher to USD 2.853 billion from 2.688 billion. The net profit sank 27 percent to USD 370 million, mainly due to acquisition costs and losses on debt extinguishment, with EPS falling 30 percent to USD 4.18. AFFO meanwhile lifted 13 percent to USD 2.189, with AFFO per share up 9 percent to USD 24.76. The company ended December with a cash position of USD 1.604 billion, from 1.869 billion the year before.
Looking towards the first quarter of this year, Equinix forecasts revenues rising 2 percent at the midpoint to USD 1.587-1.607 billion, including a positive forex effect of USD 17 million when compared to average rates of Q4 2020. The adjusted EBITDA is seen at USD 737-757 million, including a positive forex effect of USD 9 million and integration costs of USD 9 million related to acquisitions. Capex is expected at USD 17-27 million.
For 2021, the company sees revenues up 10-11 percent from the year earlier to USD 6.580-6.640 billion, an adjusted EBITDA of USD 3.067-3.127 billion (including USD 30 million worth of integration costs), AFFO advancing 10-12 percent to USD 2.413-2.463 billion and AFFO per share climbing 8-10 percent to USD 26.72-27.28.
