Swoop sees AUD $88.9m revenue boost, driven by fibre expansion

Australian telecommunications company Swoop has reported a 14% increase in revenue for the financial year 2023-2024, bringing its total revenue to AUD $88.9 million. The rise has been attributed largely to strong organic growth and the company's expansion into high-margin fibre infrastructure.

Swoop also disclosed an underlying EBITDA of AUD $16.4 million, marking a 6.4% year-on-year increase. Subscriber numbers rose by 18% to 179,092, demonstrating the company's success in attracting new customers. This marks the third full year since Swoop's listing on the Australian Stock Exchange.

Swoop's CEO, Alex West, commented on the results: "It is immensely gratifying to see our strategy come to fruition. We have managed to remain a highly competitive reseller while simultaneously advancing the development of our own infrastructure, which will drive long-term gross margin and profitability." He noted that the company saw significant progress in automation and the delivery of self-service options, which was reflected in various customer service awards received throughout the year.

Following the acquisition of Moose Mobile in November 2022, Swoop has seen its mobile services grow from just over 94,000 to more than 131,000 by the end of FY24. West explained that the integration and subsequent synergies have benefitted the combined entity, saying, "This coupled with significant cross-sell opportunities and strong cash generation from the revenue and cost synergies of the combined organisation has demonstrated the success of Swoops strategy, through both acquisition and organic growth opportunities."

The company also announced its entry into the residential fibre infrastructure market. Towards the end of FY24, Swoop secured an AUD $36 million long-term contract to provide fibre infrastructure to a Nasdaq-listed technology company, expanding its reach in greater Melbourne. The new contract is expected to push the company's infrastructure further into key digital areas and new developments, targeting around 450,000 residential premises and 42,000 businesses.

In other highlights from FY23-24, Swoop delivered an operating cash flow of AUD $10.7 million. The company's operational expenditure as a percentage of revenue decreased by 18% over the last four years to 21%. Swoop also completed the divestment of its wholesale voice business in July 2024, post a transaction announced in June 2024 for AUD $9 million.

West highlighted the company's development, mentioning improvements in employee engagement, which he believes played a crucial role in achieving strategic objectives. "The key to our success has been the development of our team; in FY24, we saw further improvements in employee engagement, which has directly contributed to our ability to execute our strategic objectives," he commented.

Swoop continues to expand its fixed wireless infrastructure in regional Australia, adding 14 new sites in Victoria and extending coverage in Western Australia. The company has also initiated the construction of a 300-kilometre-owned fibre network, further solidifying its position among Australia's top providers of enterprise Ethernet services.

The company and its leadership team remain optimistic as Swoop moves into the next financial year. West concluded, "Along with the Board, the Executive and the entire Swoop team are looking forward to further success into FY25 and beyond."