Data center operator VNET Group Inc. (VNET.US) announcedon Wednesday its revenue rose 18.3% year-on-year to 2.25 billion yuan ($309.5 million) in the first-quarter, even as its net loss widened by 27% to 237.6 million yuan. The company attributed the loss increase primarily to changes in the fair value of financial instruments.
The company said revenue from its wholesale internet data center (IDC) business surged 86.5% year-on-year to 673.2 million yuan, while revenue from its retail IDC business increased 4.8% to 968.3 million yuan. As a result of the strong growth in the wholesale operation, total IDC-related revenue rose 27.8% year-on-year to 1.64 billion yuan. The company’s non-IDC business revenue edged down 1.4% to 604.8 million yuan.
VNET said its adjusted EBITDA for the quarter rose 26.4% from a year earlier to 682.4 million yuan, with its adjusted EBITDA margin improving by 1.9 percentage points to 30.4%.
VNET’s shares fell 10.76% on Wednesday in New York to close at $5.39. The stock is up 39.64% over the past six months.
By Lee Shih Ta
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