Megaport Shares Slump to Two-Year Low After Third-Quarter Revenue Update
21 April 2022 - 1:32PM
Dow Jones News
By Stuart Condie
SYDNEY--Megaport Ltd.'s shares have tumbled to a two-year low
after the pace of the Australian tech services company's revenue
growth continued to stall in its fiscal third quarter.
The ASX-listed company on Thursday reported monthly recurring
revenue for the three months through March of 9.5 million
Australian dollars (US$7.1 million), up 3% from the second quarter.
Stripping out the impact of currency moves, it grew 6% on quarter,
the same pace seen in the second quarter and down from 11% in the
first quarter.
Megaport's shares were 18% lower at A$10.41 and on course for
their lowest close since April 8, 2020. The stock was the worst
performing ASX 200 component and is down 44% so far in 2022.
The interconnectivity service provider--whose customers include
Zoom Video Communications Inc., Uber Technologies Inc. and eBay
Inc.--creates a virtual platform and leases so-called port access
to technology customers.
It sold 1,577 new services in the third quarter at an average of
2.88 a port, which it said reflected increasing network usage by
customers. Average revenue for each port in March was A$1,049, down
2.3% from the previous three months.
Write to Stuart Condie at stuart.condie@wsj.com
(END) Dow Jones Newswires
April 20, 2022 23:17 ET (03:17 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
Megaport (ASX:MP1)
Historical Stock Chart
From May 2024 to Jun 2024
Megaport (ASX:MP1)
Historical Stock Chart
From Jun 2023 to Jun 2024