Superloop reports record organic growth in 1H FY24 results

Superloop, a prominent telecommunications challenger, has revealed its 1H FY24 results, highlighting a record level of organic revenue growth and expanding margins.

The results showed soaring total revenue, reaching AUD $197.6 million, up 32.7% from AUD $148.9 million in the previous corresponding period. Particularly notable was the strong organic revenue growth, up 20.0%, across all three customer categories.

With a record organic customer base growth, more than 40,000 net new customers were added in 1H FY24. These additions account for a boost of 38.1%, which now totals over 408,000 customers serviced by Superloop.

The company's gross margin reached AUD $68.7 million, seeing an increase of AUD $19.2 million, which amounts to a growth of 38.9% compared to the previous corresponding period. There was also a significant 83.3% rise in underlying EBITDA, which reached AUD $23.0 million compared to AUD $12.6 million in the previous period.

The company's NPATA experienced a huge surge, up 114.3% to AUD $1.2 million from (AUD $8.4) million in the previous corresponding period. Noteworthy is the strong operating leverage evident with operating expense growth markedly below that of revenue growth for the period. Operating cash flow saw an increase of AUD $13 million on the previous period to AUD $23.7 million, and free cash flow was up AUD $9.1 million to AUD $12.5 million.

While there was a net loss of AUD $18.7 million, this represents an AUD $3 million improvement over the previous period. In addition, Superloop has announced a landmark deal with AGL, valued over the contract term at more than AUD $31 million, which will contribute AUD $4-$5 million in revenue in FY25.

Looking forward, Superloop is well on its way to achieving the FY24 Underlying EBITDA guidance of AUD $49 – 53 million, representing a projected increase of 31 – 42% in FY23. The first month alone of the second half of the fiscal year has seen a commendable performance, with 9,000 new customers added.

Reflecting on these results, Paul Tyler, Superloop's CEO and Managing Director, conveyed his satisfaction. "We are very pleased to report another period of strong financial performance, delivering record organic revenue and net new customer growth over the period. Importantly, all three segments contributed to this growth," he stated.

Tyler referred to the company's ongoing 'Double Down' strategy. He said, "The 2024 financial year is the first of our three-year 'Double Down' strategy, and the performance in this first half demonstrates its execution is tracking strongly against the plan."

Highlighting the significant partnership with AGL, Tyler expressed his contentment. "We were also very pleased this half to secure an exclusive five-year wholesale contract with AGL. This win reaffirms our strong wholesale capabilities coupled with our low-cost operating model and will support significant growth in the Wholesale segment's revenue and gross margin from FY25," added Tyler.