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Free Post Earnings Research Report: 21Vianet’s Adjusted Net Loss Narrowed

LONDON, UK / ACCESSWIRE / January 08, 2018 / Active-Investors.com has just released a free earnings report on 21Vianet Group, Inc. (NASDAQ: VNET). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=VNET. 21Vianet reported its third quarter fiscal year 2017 operating results on December 06, 2017. The provider of carrier-neutral internet data center services' reported earnings loss was in-line with market expectations. Register today and get access to over 1000 Free Research Reports by joining our site below:


Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, 21Vianet Group most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:


Earnings Highlights and Summary

21Vianet's total net revenues were RMB886.0 million (US$133.2 million) in Q3 2017 compared to RMB968.0 million in Q3 2016. The decrease in net revenues was mainly due to the decrease in revenues from its MNS business. The Company's revenue fell short of analysts' estimates by $12.24 million.

During Q3 2017, 21Vianet's net revenues for hosting and related services grew 8.7% on a y-o-y basis to RMB759.3 million (US$114.1 million) compared to RMB698.5 million in Q3 2016. The revenue growth was primarily due to the increase in revenues from the Company's business lines across the segment.

For Q3 2017, 21Vianet's net revenues for MNS were RMB126.8 million (US$19.1 million) compared to RMB269.5 million in Q3 2016. The decrease was primarily due to intensifying competition and pricing pressure.

During Q3 2017, 21Vianet's gross profit increased by 1.6% to RMB189.8 million (US$28.5 million) compared to RMB186.9 million in Q3 2016. The Company's gross margin increased to 21.4% in the reported quarter from 19.3% in the year earlier comparable quarter. The increase was primarily due to the Company's execution of its cost-control strategies.

21Vianet's adjusted gross profit, which excluded share-based compensation expenses and amortization of intangible assets derived from acquisitions, was RMB220.5 million (US$33.1 million) in Q3 2017 compared to RMB224.6 million in Q3 2016. The Company's adjusted gross margin increased to 24.9% in the reported quarter from 23.2% in the year earlier same quarter.

During Q3 2017, 21Vianet's adjusted EBITDA were RMB135.0 million (US$20.3 million) compared to RMB67.9 million in Q3 2016. The Company's adjusted EBITDA margin expanded to 15.2% in the reported quarter from 7.0% in the year earlier same quarter.

21Vianet's net loss was RMB1.48 billion (US$222.3 million) in Q3 2017 compared to RMB171.5 million in Q3 2016. The increase in net loss was primarily due to impairment of long-lived assets of RMB401.8 million (US$60.4 million), impairment of goodwill of RMB766.4 million (US$115.2 million), and disposal loss of subsidiaries of RMB180.0 million (US$27.1 million).

For Q3 2017, 21Vianet's adjusted net loss was RMB68.8 million (US$10.3 million) compared to an adjusted net loss of RMB91.4 million in Q3 2016. The Company's adjusted net margin was negative 7.8% in the reported quarter compared to negative 9.4% in the comparative period in 2016.

21Vianet's diluted loss per share was RMB2.20 in Q3 2017, which represented the equivalent of RMB13.20 (US$1.98) per American Depositary Share ("ADS"). The Company's adjusted diluted loss per share was RMB0.10 in the reported quarter, which represented the equivalent of RMB0.60 (US$0.12) per ADS.

Operation Details

During Q3 2017, 21Vianet's total Monthly Recurring Revenues (MRR) per cabinet increased to RMB8,571 from RMB8,311 in Q2 2017. The Company's monthly Recurring Revenues for its hosting business (Hosting MRR) per cabinet increased to RMB7,817 in the reported quarter from RMB7,615 in the year earlier same quarter and RMB7,697 in the previous quarter.

21Vianet's total cabinets under management increased to 27,424 as of September 30, 2017, from 27,361 as of June 30, 2017, with 21,273 cabinets in the Company's self-built data centers and 6,151 cabinets in its partnered data centers.

During Q3 2017, 21Vianet's utilization rate was 74.4% compared to 75.2% in Q2 2017. The Company's hosting churn rate, which is based on the Company's core IDC business was 0.97% in the reported quarter compared to 0.24% in the previous quarter.

Balance Sheet

As of September 30, 2017, the Company's cash and cash equivalents and short-term investment were RMB1,823.4 million (US$274.1 million).

Stock Performance Snapshot

January 05, 2018 - At Friday's closing bell, 21Vianet's stock climbed 2.12%, ending the trading session at $9.16.

Volume traded for the day: 901.21 thousand shares, which was above the 3-month average volume of 679.40 thousand shares.

Stock performance in the last month – up 30.86%; previous three-month period – up 33.53%; past twelve-month period – up 22.79%; and year-to-date – up 14.79%

After last Friday's close, 21Vianet's market cap was at $1.06 billion.

The stock is part of the Technology sector, categorized under the Information Technology Services industry. This sector was up 1.0% at the end of the session.


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