Q4 2024 VNET Group Inc Earnings Call Transcript
Key Points
- VNET Group Inc (VNET) reported a significant increase in net revenue, up 18.3% year over year to RMB2.25 billion for the fourth quarter.
- The wholesale business achieved remarkable growth, with revenue reaching RMB665 million, marking a 125.4% year-over-year increase.
- Adjusted EBITDA for the fourth quarter increased by 63.8% year over year to RMB721.3 million, with a margin improvement to 32.1%.
- VNET Group Inc (VNET) secured a total of 252.5 megawatts in orders from customers across various industries, indicating strong demand.
- The company achieved a full-year net profit of RMB248 million, marking a turnaround from a net loss in 2023.
- The wholesale business utilization rate decreased slightly to 72.6% due to concentrated delivery of 127 megawatts in the fourth quarter.
- Capital expenditure for 2025 is expected to be significantly high, ranging from RMB10 billion to RMB12 billion, representing a 101% to 141% increase year over year.
- The retail IDC business utilization rate was relatively low at 63.5% as of the end of December 2024.
- Despite strong revenue growth, the company faces potential supply shortages in key regions like the Great Beijing area by 2025.
- VNET Group Inc (VNET) has a high net debt to trailing 12 months adjusted EBITDA ratio of 4.9, indicating significant leverage.
Thank you for standing by for the fourth quarter and full year 2024 earnings conference call for VNET Group Incorporated. After the management's prepared remarks, there will be a question-and-answer session.
(Operator Instructions)
Participants from our management include Mr. Ju Ma, Rotating President; Mr. Qiyu Wang, Chief Financial Officer; Mr. Qi Yang, Senior Vice President; and Ms. Xinyuan Liu, Head of Investor Relations of the company.
Please note that today's conference call is being recorded. I will now turn the call over to the first speaker today, Ms. Xinyuan Liu. Please go ahead.
Thank you, operator. Hello everyone, and welcome to our fourth quarter and full year 2024 earnings conference call. Our earnings release was distributed earlier today. And you can find a copy on our site as well as our newswire services.
Please note that today's call will contain forward-looking statements made under these harbor provisions of the U.S. Private Securities Litigation Reform
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