OVHcloud revenue climbs ten per cent in H1 FY25

The company’s cloud activities and worldwide operations were the driving force behind its strong half-year performance

French cloud provider OVHcloud reported revenue of €536m (£460.4m) in H1 FY25, a 10.3 per cent rise from €486.1m at the same period last year.

The soar was driven by the vendor’s private and public cloud activities.

Public cloud sales grew 17.4 per cent to €103.8m for the first half of FY25, fuelled by the launch of new products worldwide, the demand for AI, and the company’s “Savings Plan” offerings, which encourages its customers to make long-term commitments.

Private cloud, which includes bare metal cloud and hosted private cloud, achieved turnover of €334.2m in H1 FY25, up 10.5 per cent from the same period in 2024.

The bare metal cloud segment was propelled by demand in the US and APAC, as well as the expansion of a new range of servers launched in Q1 this year.

The hosted private cloud segment also followed an upward trend, superseded by the new pricing scheme for VMware licences introduced by Broadcom in May 2024, as well as from the momentum of sovereign offerings in Europe.

The web cloud & other segment shared revenue of €98m in the first half of FY25, up 2.9 per cent year-on-year.

This uptick was generated through the introduction of multi-year commitments in new geographies.

Good momentum worldwide

In Europe, with the exception of France, revenue climbed 9.7 per cent, making up 29 per cent of the group’s total.

Within this region, Central Europe was the most dynamic territory, with the signing of a contract with an entity of the German bank Commerzbank Group.

Turnover in France amounted to €256.7m in H1 FY25, representing 48 per cent of the company’s total.

Private cloud and public cloud activities in the cloud provider’s home country grew by 8.7 per cent and 18.6 per cent respectively.

Over the same period, revenue from web cloud and other services rose slightly compared to the first half of FY2024 and accounted for around 30 per cent of business in France.

In the rest of the world, which represents 23 per cent of OVHcloud’s global income, revenue rose 15.4 per cent year-on-year, thanks to strong momentum in the US and APAC.

Worldwide adjusted EBITDA for H1 FY25 went up 16.6 per cent year-on-year, from €184m to €214.6m.

“The strong momentum of our public cloud products and our sovereign offerings, as well as high international demand, have allowed us to record solid growth in the first half of the year, demonstrating the loyalty and trust of our customers,” said Benjamin Revcolevschi, CEO of OVHcloud.

“In line with our roadmap, our operating leverage has allowed us to significantly improve our profitability and cash generation.

“Finally, we successfully refinanced our debt, with an inaugural bond issue and the launch of a Green Loan, which will enable us to cover the needs of the Group until 2030.

“In the current geopolitical context, we are seeing a shift in the concerns of private companies and public organisations in Europe.

“Questions of strategic autonomy are now on CEOs' agendas.

“The choice of a cloud provider is no longer just a technical matter, but also a strategic issue.

“As the leading European cloud provider, we are seen as the natural partner to meet their sovereignty challenges.”

Looking ahead, the French organisation expects global turnover to increase between 9 per cent and 11 per cent year-on-year in FY25.

It also predicted an EBITDA margin of approximately 40 per cent.