Swoop losses deepen further into the red

Meanwhile revenue was up 55 per cent, subscriber count increased by 279 per cent and EBITDA up 38 per cent.

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Wireless and wholesale network infrastructure provider Swoop has claimed it has had a “fantastic start to the year” despite its post-tax losses rising by 48 per cent, to $4.2 million in the red.

The “fantastic start” for the six months to 31 December 2022, as referred to by Swoop CEO Alex West, can be seen through its revenue, which was up 55 per cent to $37 million, and its subscriber numbers, which surged 279 per cent, to 142,441.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) was also up, by 38 per cent compared to the same period a year prior, to $7.3 million.

Commenting on the results, West said that it had continued to integrate previous acquisitions and extracting further synergies from the combined businesses.

In 2022, these acquisitions included the dark fibre network assets and customers of Adelaide-based network company iFibre in January, Luminet and its Sydney-based dark fibre network for $8 million in February and Moose Mobile for $24 million in July.

Meanwhile, in 2021 it has acquired Speedweb and Community Communications (ComComs) in June, Beam Internet in July, and Countrytell and VoiceHub Group in October.

“We have had a fantastic start to the year continuing to integrate our previous acquisitions and extract further synergies from the combined business,” West said.

“Our continued growth in revenues, both via acquisition and strong organic growth, shows the high demand for reliable, locally supported internet services in a post pandemic hybrid working environment that remains resistant to pressures from increases in the cost of living.

“The acquisition of Moose in the half contributed well to the overall performance of the business and we are excited by the ability to cross-sell mobile products into our customer base as well as the opportunity to sell our great internet products to Moose’s customers.

“We will continue our strong focus on managing cash flow as we increasingly see acquisition synergies flow through to the bottom line and continue to target a free cash flow neutral position towards the end of the current financial year,” he added.