21Vianet Group, Inc. (NASDAQ:VNET) Q3 2020 Earnings Conference Call - Final Transcript
Nov 24, 2020 • 08:00 pm ET
Good morning, and good evening, ladies and gentlemen. Thank you, and welcome to 21Vianet Group's Third Quarter 2020 Earnings Conference Call. With us today are Mr. Alvin Wang, Chief Executive Officer and President; Mr. Samuel Shen, Executive Chairman of the Retail IDC Business Group; Ms. Sharon Liu, Chief Financial Officer; and Ms. Rene Jiang, Investor Relations Director of the Company.
I'll now turn the call over to your first speaker today, Ms. Rene Jiang, IR Director of 21Vianet. Please go ahead, ma'am.
Thank you, operator. Hello, everyone. Welcome to our third quarter 2020 earnings call.
Before we start, please note that this call may contain forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations that involve known and unknown risks, uncertainties and other factors not under the company's control, which may cause actual results, performance or achievements of the company to be materially different from the results, performance or expectations implied by these forward-looking statements. All forward-looking statements are expressly qualified in their entirety by the cautionary statements, risk factors and details of the company's filings with the SEC. 21Vianet undertakes no duty to revise or update any forward-looking statements for selected events or circumstances after the date of this conference call.
I will now turn the call over to Mr. Alvin Wang, CEO and President of 21Vianet.
Thank you, Rene. Good morning and good evening, everyone. Thank you for joining us on our earnings call today.
We are pleased to announce that we achieved strong results once again in the third quarter of 2020. During the quarter, we grew our revenues to RMB1.25 billion, which was in line with our previous guidance and increased our adjusted EBITDA to RMB368.5 million, exceeding our previous guidance. Additionally, our EBITDA margin also expanded to 29.6% in the third quarter as compared to 27.8% in the same period of 2019.
In terms of cabinet delivery, we delivered more than 7,000 cabinets in the third quarter of 2020. As a result of our steady organic growth and on-track delivery schedule, we have delivered more than 15,000 cabinets in total since the beginning of the year. Beyond our delivery success, we also continued to make headway in our expansion efforts. During the quarter, for example, we secured two separate resources, both of which are located in the surrounding area of Beijing to the immediate east of the city. Importantly, when completed the combined total IT power of both resources will be around 50 megawatts, helping us to better serve the growing demand for our IDC solutions in the region. Looking ahead, we expect the first stage of both projects to be completed during the first half of 2021.
Moreover, in Jiangsu, we have secured an additional 140 megawatts of IT power to be used in the expansion of our Jiangsu campus. In fact, this additional megawatt capacity is around three times the current megawatt capacity of