VNET Group backs full-year outlook despite Q1 profit miss

Published 28/05/2025, 11:00
© Reuters.

Investing.com -- VNET Group confirmed its full-year guidance after reporting mixed first-quarter results, with a wider-than-expected loss and above-consensus revenue.

The Chinese carrier-neutral data center service provider posted Q1 loss of RMB0.90 per share, notably wider than the loss of RMB0.25 per share that analysts expected. 

Revenue for the period jumped 18.3% year-over-year to RMB2.25 billion, just above the consensus estimate of RMB2.23 billion.

Adjusted EBITDA rose 26% year-over-year to RMB682.4 million, surpassing the forecast of RMB653.5 million.

"We kicked off 2025 with a strong first quarter thanks to excellent execution of our effective dual-core strategy," said Josh Sheng Chen, Founder, Executive Chairperson and interim CEO of VNET.

"Our wholesale IDC business recorded another impressive performance, marked by our robust deliveries and customers’ fast move-in pace. As of March 31, 2025, our wholesale capacity in service increased by 88MW quarter over quarter to 573MW. Wholesale capacity utilized increased by a record high of 84MW quarter over quarter to 437MW."

For the full-year 2025, the company still expects revenue between RMB9.1 billion and RMB9.3 billion, reflecting 10% to 13% year-over-year growth. This compares to a consensus estimate of RMB 9.31 billion.

VNET also reaffirmed its adjusted EBITDA outlook in the range of RMB2.70 billion to RMB2.76 billion, compared with the RMB2.75 billion consensus, implying annual growth of 11% to 14%.

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