Cordiant Digital Infrastructure (CORD) H1 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance for the six months to 30 September 2024, with revenue up 9.3% and EBITDA up 15.2%, supporting a 5.4% total return and NAV per share of 124.4p, up from 120.1p at March 2024.

• Share price total return was 38.9% for the period, with the discount to NAV narrowing to 30.5% from 46.7%.

• Portfolio diversified across towers, fibre, data centres, and IoT, with major acquisitions including a 37.2% interest in DCU Invest and DCU Brussels for €72.3m, creating a leading Belgian data centre platform.

• Dividend of 2.1p per share declared, covered 1.8x by AFFO and 4.7x by EBITDA.

• Directors and management increased insider ownership to 1.8%, aligning interests with shareholders.

Financial highlights

• Six-month revenue reached £167m, up 74% over two years; EBITDA for the 12 months to 30 Sep 2024 was £150.6m.

• Portfolio EBITDA rose 15.2% to £77.4m and revenue increased 9.3% to £160.8m year-over-year on a like-for-like, constant currency basis.

• Net asset value at 30 Sep 2024 was £952.4m, or 124.4p per share.

• Basic earnings per share for the period was 6.4p; interim dividend per share was 2.1p.

• Share buyback program acquired 7.8m shares at an average 39.7% discount to NAV, increasing NAV per share by 0.4p.

Outlook and guidance

• On track to deliver targeted net annual returns of 9%+ p.a. through capital growth and dividend yield.

• Board remains confident for the remainder of the year, citing strong portfolio performance, robust demand for digital infrastructure, and narrowing share price discount to NAV.

• Focus remains on bolt-on acquisitions, especially in data centres, with a pipeline weighted towards Europe and North America.

• Market repricing in mid-market deals is creating attractive acquisition opportunities.

• Company expects to deliver as planned for the year ending 31 March 2025, supported by available liquidity and growth opportunities.