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Acquisitions see Superloop boost first-half revenue six-fold

Fibre infrastructure company reverses last year's AU$2 million first-half loss into AU$1.8 million after-tax profit.
Written by Chris Duckett, Contributor

The string of acquisitions completed by Superloop in recent times is beginning to bear fruit, with the Asia-Pacific fibre infrastructure company increasing its revenue six-fold year on year.

Overall, the company posted AU$56 million in revenue for the half-year to December 31, a AU$47 million increase on the same time last year, with underlying EBITDA reported as AU$12.5 million, a jump of AU$14.7 million.

Net profit after tax came in at AU$1.8 million against a AU$2 million loss year-on-year.

The company said AU$36.4 million of revenue was attributable to BigAir Group, which only had AU$2.2 million in revenue counted last year due to its acquisition completing only 10 days earlier to the reporting date, and AU$2 million in revenue was from NuSkope, which was acquired on October 13, and AU$1 million from GX2 following its November 17 acquisition.

Broken down by company segment, its Superloop connectivity business reported EBITDA of AU$9.5 million on revenue of AU$28 million, Superloop managed services made AU$3 million in EBITDA from AU$18 million of revenue, the Superbb broadband business reported AU$9.8 million in revenue and AU$2.5 million in EBITDA, with the Corporate segment reporting EBITDA of minus AU$3.2 million from revenue of a mere AU$190,000.

Geographically, the majority of revenue and EBITDA was from Australia, at AU$20 million and AU$5.5 million respectively, followed by Hong Kong with AU$4.5 million in revenue and AU$2.3 million of EBITDA, with Singapore contributing AU$1.7 million in EBITDA on AU$3 million in revenue.

"The growth in revenue and earnings over the first half last year reflects our regional growth strategy and further strengthens the company's long term aspirations," Superloop CEO Bevan Slattery said. "Operationally, we have focused on integrating networks and systems across Australia and the Asia Pacific region, while also acquiring strategic bolt-on businesses that complement our existing capabilities."

The company said on Monday the Indigo subsea it gained when it purchased SubPartners in April last year could be completed ahead of schedule in the first-half of next year, if the weather is helpful and more efficiencies are found.

Looking forward, Slattery said the integration of the acquired businesses will result in cost savings and "revenue synergies", and a combination of BigAir and GX2 managed service capabilities will be expanded upon in Hong Kong and Singapore.

"Our second half will see continued focus on operational improvements and efficiency while further building out our networks in Australia, Hong Kong and Singapore," Slattery added. "We have significant opportunities to continue expanding our access networks to major commercial buildings in these three countries, while hyperscaling our microwave network offering in Australia."

"The completion of the Indigo international cable systems will further expand our network so we can offer customers a fully meshed pan-Asian network."

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