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Equinix says financial impact of pandemic lower than anticipated

Written by Thu 29 Oct 2020

Data centre giant says Covid-19 will cost it around $20 million less than first thought

Equinix said the financial impact of Covid-19 on its business will be lower than originally predicted after the data centre provider posted better than expected Q3 earnings.

In May, after considering a range of scenarios, company executives warned costs related to the pandemic could rise to $50 million for 2020. Two quarters later and Equinix says the figure is more likely to be between $20 and $30 million.

“As businesses navigate the economic, health and societal changes happening in the world, Equinix is in a unique position to help our customers adapt, respond and accelerate their digital transformation – a key driver for economic recovery,” said Charles Meyers, president and CEO of Equinix.

Equinix netted $1.52 bn in Q4 revenue, representing both a 3% increase over the previous quarter and $0.5 bn more revenue than the company made in the third quarter of 2019.

The data centre provider now expects to secure a yearly profit of around $6 billion – an 8 per cent rise from the previous year – after raising yearly revenue guidance by $39 million than stated in its Q2 earnings report.

In Q3, Equinix added 8,500 net interconnections, fuelled by video conferencing, streaming, cloud adoption and work-from-home local aggregation.

Traffic on the Equinix Internet Exchange rose by 43% year-over-year, with a 7% increase quarter-over-quarter. While Equinix Fabric, previously Equinix Cloud Exchange Fabric crossing the $100 million annual run rate.

In October, Equinix completed the acquisition of 12 Bell Canada data centres and expects to acquire another Bell Canada facility in Ottawa in Q4 2020.

Written by Thu 29 Oct 2020

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