VNET Group, Inc. announced robust unaudited financial results for the third quarter ended September 30, 2024, with total net revenues increasing by 12.4% year-over-year to RMB2.12 billion. This growth was primarily fueled by the wholesale IDC business, which saw an impressive 86.4% year-over-year revenue increase. The company also reported a net income attributable to VNET Group, Inc. of RMB317.6 million, a significant turnaround from a net loss of RMB50.5 million in the same period of 2023, mainly due to a gain in debt extinguishment.
Operational highlights included securing six new wholesale orders totaling 84MW, notably a 32MW order from an internet customer at the Huailai IDC Campus. Adjusted EBITDA for the quarter grew by 17.1% year-over-year to RMB594.8 million, or 20.2% when excluding non-continuable VAT benefits. The adjusted EBITDA margin improved to 28.0%, up from 26.9% in the prior year period, reflecting enhanced profitability.
Looking ahead, VNET increased its full-year 2024 guidance, now expecting total net revenues between RMB8.00 billion and RMB8.10 billion, and adjusted EBITDA between RMB2.28 billion and RMB2.30 billion. The company also announced plans to sign a definitive agreement by the end of 2024 for a pre-REITs fund with a leading Chinese insurance company, involving the Taicang IDC Campus with an estimated value of RMB5.74 billion, where VNET will retain a 51% interest and sell 49% for approximately RMB1.15 billion.
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