Q2 2024 GDS Holdings Ltd Earnings Call Transcript
Key Points
- GDS Holdings Ltd (GDS) achieved a revenue growth of 18% and adjusted EBITDA growth of 15% in Q2 2024.
- The company has seen significant progress in stabilizing its China business and executing its international strategy.
- GDS Holdings Ltd (GDS) signed a master sales agreement with a global technology company for capacity at its new campus in Batam, indicating strong international demand.
- The company brought 45,000 square meters into service in the first half of 2024, with over 20% already utilized.
- GDS Holdings Ltd (GDS) has a strong market position in emerging data center markets like Singapore, Johor, and Batam, with 388 megawatts of total customer commitments.
- EBITDA margin for the China segment decreased by 2.1 percentage points year-on-year due to increased power tariffs.
- The company expects lower CapEx in the second half of the year for its China segment but anticipates exceeding its CapEx guidance for the International segment.
- GDS Holdings Ltd (GDS) faces challenges in securing regulatory approvals for its REIT plan in China, which has been in progress for over a year.
- The company has a significant amount of contract renewals in the second half of the year, which could impact churn rates.
- The increase in capacity and service for the International segment is expected to be relatively small in the next two quarters, with substantial growth anticipated only in 2025.
Hello, ladies and gentlemen, thank you for standing by for GDS Holdings Limited second quarter 2024 earnings conference call.
(Operator Instructions) Today's conference call is being recorded.
I will now turn the call over to your host, Ms. Laura Chen, Head of Investor Relations for the company. Please go ahead, Laura.
Thank you. Hello, everyone, and welcome to the (technical difficulty) [second] quarter 2024 earnings conference call of GDS Holdings Limited. The company's results were issued via newswire services earlier today and are posted online.
A summary presentation, which we'll refer to during this conference call, can be viewed and downloaded from our IR website at investors.gds-services.com.
Leading today's call is Mr. William Huang, GDS's Founder, Chairman, and CEO, who will provide an overview of our business strategy and performance; Mr. Dan Newman, GDS's CFO, will then review the financial and operating results; Ms. Jamie Khoo, COO of GTS International, is also
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