Brisbane - 24 August 2021 - Superloop (ASX:SLC) has released its full year financial results for FY2021.
Superloop has delivered on the targets set in the first year of its multi-year Accelerated Growth Strategic Plan.
Underlying group revenue for the company increased 14% year-on-year,underlying EBITDA more than doubled (by 108%+) and the company reached the significant milestone of free cash flow breakeven for the year.
Revenue from core fibre connectivity services to wholesale and business customers grew 22% year-on-year, and new fibre connectivity sales increased 27% year-on-year.
Consumer subscriptions grew 62% to 47,000. This growth does not include the additional 110,000 customers acquired through the acquisition of Exetel (which was completed on 31st July 2021), who are already being migrated to the Superloop network.
EBITDA was $18.2 million before acquisition costs, within market guidance of between $18.0 million and $18.5 million.
Operating expenses were reduced by 17%, and capital expenditure was steady at $14.6 million (excluding leases and indefeasible rights of use agreements (IRUs) used in telecommunications agreements). Paul Tyler, CEO and Managing Director said: "These are very strong results in what has been a transformational year for Superloop.
"We delivered on our targets in the first year of our multi-year strategy that focuses on driving network utilisation through growth in all three of our customer segments, and all three countries in which we operate.
"That strategy exists to accelerate that network utilisation, and to deliver to Australian business, wholesale and consumer customers a new alternative for their connectivity needs, one that takes advantage of high-speed, digital-first
networks and services.
"We demonstrated our ability to execute well, and it's pleasing to see that translate to a marked increase in the utilisation of the Superloop network, and the outstanding network assets that we have.
"We added significant depth to leadership, with over 100 years of industry and management experience joining the Superloop leadership team over the last 12 months. That expertise was paramount in the recent successful acquisition of Exetel, and the associated capital raise.
"We are running ahead of plan in migrating Exetel customers to the Superloop network, largely thanks to the strength of our underlying network, the level of embedded automation we have built, and the great talent we have in Superloop, now augmented with the team at Exetel. Confidence is high that the synergies identified to support the transaction being highly accretive will be delivered in full.
"In addition to the continued focus on organic growth across all three customer segments, the robust balance sheet that we now have in place allows us the operational flexibility to contemplate further M&A options in the year ahead, should we identify opportunities that represent sufficient value.
"Over the last 12 months, we have achieved a number of important customer wins. For instance, in addition to the previously announced $25m contract signed with Symbio (MNF Group Limited) to become its exclusive supplier of wholesale nbn aggregation services, Superloop has won multi-year contracts with Buroserv and Telair worth in excess of a combined $12m for nbn traffic class 4 (TC4) aggregation services using the Superloop Connect Platform.
"The momentum we have built in each customer segment, combined with the progress in integrating Exetel, has set the company up for another strong year in FY22.”