21Vianet Group Inc (NASDAQ: VNET) stock fell 0.63% after the company in the first quarter of FY 19 has reported the net profit attributable to ordinary shareholders of RMB5.6 million (US$0.8 million) compared to a net profit of RMB32.8 million in the same period of 2018 and a net loss of RMB114.1 million in the fourth quarter of 2018. As of March 31, 2019, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB2.54 billion (US$379.0 million). The net cash generated from operating activities was RMB32.4 million (US$4.8 million) in the first quarter of 2019 compared to RMB95.9 million in the same period of 2018 and RMB237.0 million in the fourth quarter of 2018. Adjusted cash gross profit, increased by 17% to RMB406.7 million from RMB347.5 million in the same period of 2018
Moreover, VNET reported RMB871.9 million in revenue, that reflects an 8.9% year-over-year increase. The adjusted EBITDA exceeded the high-end of the company’s guidance and delivered 29.3% year-over-year increase to RMB253.5 million. EBITDA margin expanded to 29.1% during the first quarter 2019.
For the second quarter of 2019, the Company expects net revenues to be in the range of RMB880 million to RMB900 million. Adjusted EBITDA is expected to be in the range of RMB250 million to RMB270 million.
For the full year of 2019, the company expects net revenues to be in the range of RMB3,760 million to RMB3,860 million. Adjusted EBITDA is expected to be in the range of RMB1,000 million to RMB1,100 million.
Meanwhile, during the first quarter, the company announced that it priced the offering of US$300.0 million in aggregate principal amount of the USD-denominated notes due 2021 at an interest rate of 7.875% per annum, following a successful tender offer by the company of the outstanding US$300.0 million 7.000% senior notes due 2020. On May 6, 2019, the Company facilitated the official launch of Microsoft’s cloud service Dynamics 365 in China. The Company has recently signed an agreement to make an acquisition in Beijing to both satisfy increasing customer demand in the southern part of Beijing and support the company’s continuing expansion plans in Beijing. This acquisition is expected to lead to approximately 1,000 cabinets by the middle of 2019 and has the potential for further expansion. In 2019, VNET has renewed the plan to add 6,000 to 8,000 retail cabinets, including the recent acquisition in Beijing.