Swoop, the Australian fixed wireless and residential internet provider, has announced robust growth in its half-yearly results, including a 17% year-on-year increase in revenue. The company's underlying EBITDA was AUD $8.2 million, a gain of 13% from the same period in the previous year. Additionally, Swoop saw a 16% growth in subscriber numbers, taking its total to 161,335.
These promising results come after Swoop's successful second year on the ASX in 2023. The company has focused on post-acquisition integration and growth following the completion of eight buys over the last two years. The strong half-year results demonstrate Swoop's ability to leverage these acquisitions and continue a healthy growth trajectory.
A significant factor contributing to Swoop's growth was its acquisition of Moose Mobile in November 2022. Since then, Swoop has worked to expand its role as the national mobile virtual network operator, leading to marked synergies and organic growth initiatives. At the time of acquisition, Moose Mobile provided more than 94,000 mobile services to customers across Australia, a figure that now stands at more than 118,000. This success story and the potential for cross-selling and strong cash generation represent significant growth opportunities for Swoop.
Swoop's half-year FY2024 performance highlights include AUD $43.5 million in revenue, a 17% increase from the last half-year. Gross Margin also improved by 9% to AUD $17.2 million, and underlying EBITDA grew by 13% to AUD $8.2 million. Subscriber numbers increased by 16% entirely from organic growth.
The company has shown progress in its free cash flow, increasing it by AUD $1.3 million to $(1.1) million from $(2.4) million in the first half of FY23. This improvement reflects the company's commitment to moving towards cash generation, which is a positive development for its financial health and stability.
Alex West, Chief Executive Officer of Swoop, commented on the company's performance, saying, "We have had another fantastic start to the year as we see the core business deliver organic growth and strong operating cash generation, with record sales across our key products of FW Broadband, NBN, Mobile and Voice."
Nearly AUD $9.4 million of Swoop's secured Westpac financing facilities remain and will fund further growth and expansion. It should be noted that the balance of the original AUD $32.1 million facility has been spent on the Moose acquisition. As of the end of this half-year, Swoop held a strong cash position of AUD $16.2 million.
Furthermore, the company's sustained revenue increase underscores a strong demand for reliable internet and mobile services. Alex West states this demand "continues to withstand the impact of rising living costs," indicating a robust business model capable of weathering economic challenges.
