21Vianet Group Inc (NASDAQ:VNET) posted its unaudited financial report for the third quarter closed September 30, 2017. Total net revenues came at RMB886.0 million in Q3 2017, versus RMB968.0 million in the same period in 2016. The drop in net revenues was primarily due to the drop in revenues from MNS operations, which was partly offset by the jump in revenues from hosting and associated services business.
Steve Zhang, the CEO of 21Vivanet, expressed that they are delighted to see their core IDC business recorded steady growth in Q3 2017. Several of their large customers, such as Ele.me, Momo, Xiaomi and JD Finance, further extended their capacity at their IDC centers.
Meanwhile, as medium and small businesses continue to move to hybrid cloud from public cloud solutions, and as big businesses further increase their requirements towards tailored solutions, their competitive benefits in network quality, carrier service quality and neutrality have uniquely positioned them to benefit on such market demand, as shown by their newly formed association with BMW.
In respect of their managed network services business, they completed its divestiture at the close of Q3 2017. They consider this as their milestone growth, which will enable them to re-focus on their IDC business and solidify their major competitive power. Overall, they consider they are stronger and leaner than ever before, and they have the right plan to bring their business to the next stage of growth.
Terry Wang, the CFO of 21Vianet, reported that in Q3 2017, their total net revenues came at RMB886 million, in line with their initial projection. Consistent with their plan of cost control and business realignment, their profitability in Q3 2017 continued to improve. Their adjusted EBITDA touched RMB135 million in the quarter, surpassing the upper end of their projection of RMB122 million. Adjusted EBITDA margin came at 15.2% compared to 7% in the prior year period.