Swoop acquires conduit & fibre assets, eyes $1.2m boost

Swoop has announced the acquisition of conduit and fibre assets in Western Australia, marking a significant move to enhance regional connectivity and services.

The infrastructure, located in the Seacrest Estate near Geraldton, connects approximately 900 existing homes. This acquisition, funded from Swoop's existing cash reserves, is anticipated to bring in an additional AUD $1.2 million in revenue over the next three years.

The move is part of Swoop's ongoing efforts to bolster connectivity in regional Australia. Alex West, Swoop's Chief Executive Officer, elaborated on the importance of this acquisition.

"This is an exciting time for Swoop as we continue to focus on our residential infrastructure to ensure that we are delighting our customers," he said. "We are now in a position to offer high speed fibre-based solutions as an alternative to the incumbent players in the region."

West highlighted that the acquisition represents the beginning of a more extensive strategy aimed at delivering high-margin fibre products. "This acquisition is the start of our long-term strategy to ensure that we deliver returns on high margin fibre products," he noted.

"We will continue to look at other opportunities in this space, as well as focusing on building our own Swoop Infrastructure brand as an alternative for developers looking for greater service and value from their projects."

He also pointed out the broader significance of this transaction for the company. "This latest acquisition further strengthens Swoop's position geographically across the country and sets the business up with significant firepower remaining to explore other transactions and deliver growth in our key products," West concluded.

Swoop has a history of expanding through acquisitions, having incorporated nine businesses since its listing in May 2021. These include Speedweb, Countrytell, Voicehub, Luminet, iFibre, Beam Internet, and Community Communications.

In November 2022, the company made its largest acquisition to date by purchasing national mobile network operator Moose Mobile for AUD $24 million. The latest fibre-related acquisition in Seacrest Estate is another step in this consistent pattern of growth.

Financially, Swoop has seen a 17% increase in revenue, reaching AUD $43.5 million year-on-year, according to the most recent first half results for FY2024.

The company's underlying EBITDA also rose by 13% to AUD $8.2 million for the same period. Furthermore, Swoop experienced a 16% organic growth in subscriber numbers, increasing from 111,176 to 161,335.

This continued expansion has not gone unnoticed in the industry. Swoop has recently been named one of Australian Financial Review's Digital Transformation Leaders for 2023 with a special "One to Watch" distinction, and it has also been a finalist in the 2023 Australian Growth Company Awards.

As Swoop continues to implement its strategy focusing on high-speed fibre solutions and regional connectivity, further growth and acquisitions are to be expected.

The company's strong financial performance and recognition in the telecommunications industry underscore its position as a significant player in the market.