First half 2020 revenue of $25M & $3M EBITDA.

FY20 Full Year guidance of $55-65M reaffirmed meaning H2 2020 revenue of $30-40M forecast representing growth of 20-60% on first half.

The recent data centre acquisition was a bargain for $2M - generating $1.3M revenue & $0.75M EBITDA at 32% capacity. With the $500k required to bring the data centre up to 100% capacity means a total spend of $2.5M. At full capacity this data centre can generate $4M annual revenue & $2.5M EBITDA. So total cost of acquisition will end up being $2.5M with upgrades & will generate $2.5M EBITDA at 100% capacity.

They will be generating enough quarterly cashflow shortly to make an acquisition similar to the above nearly every quarter.

Adding 4 x acquisitions similar to the above via cashflows generated has the potential to increase revenue by $16M & EBITDA by $10M at 100% capacity in future.

Then it will be possible to do more the following years as the cashflow generated will be increasing. With the rapid growth of data centres due to cloud computing & deals with the likes of Servers Australia, 5GN is in a great position for future growth.

Market is valuing 5GN at approx. 1.5 x TTM revenue whereas NXT is valued at approx. 15 x TTM revenue so 5GN appears to be a bargain.

Australian data centre market booming

By Dylan Bushell-Embling
Monday, 24 June, 2019

The Australian data centre market is experiencing strong growth and has emerged as one of four major data centre sub-markets in Asia–Pacific, according to Budde Communications senior analyst Phil Harpur.

Full article here: https://www.technologydecisions.com.au/content/data-centres/news/australian-data-centre-market-booming-918880389