GDS - GDS slumps 5% despite confirming outlook

GDS (GDS -5.1%) Q2 net revenue increased 38.9% to $288.7M. Service revenue increased by 39.6% to $288.5M. Cost of revenue was $220.6M, a 45.1% increase over the last year. Adjusted EBITDA increased by 41.4% to $138.8M. Adjusted EBITDA margin increased to 48.1%. GAAP EPS of -$0.03 beats consensus by $0.03. The company confirms that the previously provided guidance for total revenues of RMB7,700 – RMB8,000 million vs. growth estimate of 38.11% Y/Y, adjusted EBITDA of RMB3,660 – RMB3,800M and capex of around RMB12,000M for the year of 2021 remain unchanged. Utilization rate for area in service was 69.0% as of June 30, 2021. “We maintained our strong financial performance in the second quarter of 2021. Our revenue grew by 38.9% and adjusted EBITDA grew by 41.4% compared to a year ago. Our adjusted EBITDA margin hit 48.1% in the quarter. In addition, we successfully obtained debt financing and refinancing facilities of RMB 4.7 billion to maintain our

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GDS slumps 5% despite confirming outlook