Superloop CEO, Bevan Slattery
Superloop (ASX:SLC) appears to be finally hitting its stride following several acquisitions last year, with the company posting a net profit after tax (NPAT) of $1.8 million for the six months ending 2017, a substantial turnaround from the $2 million net loss it posted for the same period the year prior.
Much of the boost in profit can likely be attributed to the publicly-listed fibre network infrastructure provider’s mammoth 533 per cent year-on-year increase in revenue, to $55.5 million for the six month period.
The company’s reported earnings before interest, tax, depreciation and amortisation (EBITDA), meanwhile, also saw a dramatic about-face, rising to $11.8 million, a marked contrast from the loss of $6.5 million it reported for the same period the previous year.
At least some of the revenue surge can be put down to its strategic acquisition strategy, which has seen it snap up a number of businesses over the past year.
In September last year, for example, the company said it would pay $10 million for South Australian fixed wireless internet services provider, NuSkope, as it works to expand its reach in the Adelaide market.
Just weeks later, the company said it had reached an agreement to acquire local Cisco Meraki, HP Aruba Networks, Ruckus and Cisco partner, GX2 Holdings, and its subsidiaries for $12 million.
Earlier, in April 2017, the company acquired telecommunications infrastructure company, SubPartners for US$2.5 million. In September 2016, the company entered into an agreement to acquire BigAir, in a transaction valued at up to $95 million.
“Over the past six months we have continued to grow at a fast pace,” Superloop CEO, Bevan Slattery, told shareholders. “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.
“Our managed services capabilities continue to build following the acquisitions of BigAir and GX2 Technology. We have the ability to further leverage our broad managed services capabilities in Australia and expand these capabilities in Singapore and Hong Kong,” he said.
According to Slattery, the benefits from the successful integration of the acquired businesses are expected to deliver cost savings and revenue synergies, to drive increased revenue and earnings in future periods.
“Over the first half, not only did we complete two strategic acquisitions, importantly we focused on integrating the networks and systems of all our acquired businesses,” Slattery said. “Key to our success will be the integration and refinement of various service delivery and support functions to ensure our customers continue to experience the service they need.”
Looking forward, Slattery said the company’s second half for the current financial year will see a continued focus on operational improvements and efficiency while further building out its networks in Australia, Hong Kong and Singapore.
“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,” Slattery said.
“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,” he said.
