Macquarie Tech forecasts FY25 growth, flags US vendor costs
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The news: Macquarie Technology Group said it expects to see earnings growth in FY25 but warned of ongoing cost increases at its US businesses.
The numbers: The data centre, cloud and telecom company's chair Peter James said in remarks ahead of its annual general meeting that EBITDA is expected to grow in FY25, which would mark 11 consecutive years of growth.
First-half EBITDA is projected to be flat compared with the prior half, with an expected return to growth in the second half.
The context: Macquarie Tech said it is still experiencing the ongoing impact of above-inflation pricing increases by US tech vendors on its cloud services and government segment EBITDA and revenue.
The company said it has not been able to fully pass on the additional costs to government customers due to contract terms. It is continuing to address this with new government contracts and changing to new tech vendors, it said.
The source: ASX announcement
