Equinix Inc (NASDAQ: EQIX) stock rose over 0.4% on 30th July, 2020 (as of 11:02 am GMT-4; Source: Google finance). For the second quarter of 2020, revenues rose 8% yoy to $1.47 billion while Adjusted EBITDA rose 9% yoy. Interconnection revenues rose 16% yoy driven by interconnection in digital transformation while Internet exchange showed peak traffic during the quarter rising 44% on a yoy basis.
The firm is seeing rising customer demand in their initial xScale JV in Europe and would expand this JV to include their seventh asset Paris 9. They are also tracking to close their new xScale JV in Japan with GIC in q4, adding new locations in Osaka and Tokyo. The firm witnessed an active construction pipeline with 29 projects underway across 20 markets in 14 countries.
Global revenues rose 8% yoy to $1.47 billion, boosted by solid net bookings and price increases, leading to a healthy recurring revenue. Adjusted EBITDA was 720 million or 49% of revenues increasing 6% and 9% over the same quarter last year, driven by solid operating performance and favorable revenue mix, which comprises a $1 million net FX benefit. EMEA and APAC showed rapid MRR growth across regions on a year-over-year normalized basis at 16% and 10%, respectively, followed by the Americas region at 3%. Network vertical showed outstanding growth on the back of better reseller activity and network expansion to support traffic growth, followed by financial services with New wins and expansions like Nordic insurance company.
For 2020, the firm forecasts to deliver an 8% to 9% growth rate for 2020 driven by the ongoing momentum as well as forecasts a net FX benefit of $23 million. MRR churn is forecasted to be in the range of 2% to 2.5% per quarter for the remainder of the year. Adjusted EBITDA margins is expected to be over 48% excluding integration costs, while the firm sees to incur $20 million of integration cost in 2020 for the integration of several acquisitions. The group sees AFFO, to be in the range of 14% and 18%.