Equinix Ireland Sees Revenue Surge to €75.3m Despite 12% Drop in Profits
Equinix Ireland Ltd has reported positive revenue growth despite a decline in profits. The company’s revenue rose by 15%, reaching €75.3 million, up from €65.2 million in the previous year. However, profits dipped by 12%, highlighting the challenges the company faced during the fiscal period.
Overview of Operations
Equinix operates data centres in multiple locations within Dublin. These include:
- Northwest Business Park (two locations)
- Citywest
- Blanchardstown
- Kilcarbery Park
Globally, Equinix manages a network of 270 AI-ready data centres across 75 strategic locations. Notable clients include industry giants such as:
- Oracle
- Nvidia
- Google Cloud
- Netflix
- Dell Technologies
- AWS (Amazon Web Services)
- Zoom
Recent Developments
Last December, Equinix announced plans to acquire the BT Group data centre business in Ireland for €59 million. This acquisition includes data centres located in CityWest and Ballycoolin, Dublin. In August, the Competition and Consumer Protection Commission (CCPC) approved this acquisition, enabling Equinix to expand its operational footprint.
Market Outlook and Financial Performance
The company’s directors have noted solid demand for Equinix Ireland’s premium data centre capacity. They attribute market growth to several factors, including:
- Increasing internet traffic
- Rising power and cooling requirements
- Growing computing needs within financial services
- The rise of cloud computing and software as a service
Despite high capital costs associated with operating data centres, Equinix plans to further enhance its capacity to meet growing demands.
Financial Highlights
In terms of profitability, the company experienced a decrease in gross profit margin, dropping to 23% due to rising costs of sales. Notably, non-cash depreciation costs amounted to €8.5 million. The post-tax profits stood at €7.6 million after a corporation tax charge of €652,000.
The workforce has also seen growth, increasing from 92 to 101 employees, which includes 76 in engineering and technical roles, 22 in sales and administration, and three directors. Furthermore, staff costs surged from €11.98 million to €14.18 million, while director remuneration totaled €345,000.
In summary, Equinix Ireland continues to show resilience in a competitive market, managing to increase revenues even as it navigates the complexities of rising operational costs and profit declines.
