According to the Zhitong Finance App, World Data - SW (09698) announced results for the first quarter of 2024. Net revenue increased 9.1% year over year to RMB 2,627.4 billion, up 2.8% month on month. Gross profit was RMB 573.7 million, up 16.7% year on year and 32.7% month on month. The net loss was approximately RMB 345 million, a year-on-year decrease of 27.33%. Adjusted EBITDA increased 4.7% year over year to RMB 1,183.4 billion.

According to the announcement, the increase in net revenue was mainly due to the overall quarterly revenue contribution brought about by the increase in billing area in the fourth quarter of 2023 and the net increase of 18,127 square meters in billing area in the first quarter of 2024, including a total billing area increase of 36,891 square meters, mainly involving the Langfang data center in China and the international Johor data center, minus the company's plans to accelerate the transfer of the 12,550 square meters of billable area and the loss of 6,214 square meters of three build-operate-transfer (B-O-T) data centers to customers.

The gross margin for the first quarter of 2024 was 21.8%, compared to 20.4% in the first quarter of 2023 and 16.9% in the fourth quarter of 2023. The increase compared to the fourth quarter of 2023 is mainly due to depreciation and amortization in sales costs, and reductions in maintenance and other operating costs.

Mr. Huang Wei, Chairman and CEO of GDS, said, “We continued to execute our business strategy in the first quarter. In China, we are moving in more quickly to deliver backlog orders and selectively acquire new orders. Internationally, we have won new strategic orders and further strengthened our development channels.”

Chief Financial Officer Dan Newman said, “In the first quarter, our revenue increased 9.1% year over year, while adjusted EBITDA increased 4.7% year over year. “We increased GDSI's private equity financing from the previously announced $587 million to $672 million to meet the accelerated growth in customer demand, which is further proof of our ability to independently fund international expansion.”