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Highlights

  • Superloop is an ASX-listed telecommunications and internet services provider
  • In FY24, SLC’s revenue jumped 30% YoY while NPATA increased 738.5% YoY
  • Agro Investments Limited has the highest stake in SLC with a shareholding of 6.41%

Established in 2014, Superloop Limited (ASX:SLC) offers telecommunications and internet services. The company operates through three segments: Wholesale, Business, and Consumer.

In the financial year 2024 (FY24), group revenue of SLC increased by 30% YoY to AUD 420.5 million, supported by increased revenue across all the segments. Meanwhile, statutory EBITDA jumped 50.3% YoY to AUD 38.5 million and NPATA surged by a whopping 738.5% YoY to AUD 23.5 million.

Growth prospects for telecommunications industry

According to the data shared by the Australian Bureau of Statistics on 4 September 2024, the Australian economy increased by 0.2% in the June 2024 quarter and grew by 1.5% in the financial year 2023-24. In the June quarter, gross value added increased by 0.3%, with 13 of the 19 industries showing growth. 

During the June quarter, the highest growth was shown by the information media and telecommunications industry, up 1.6% sequentially, followed by professional, scientific and technical services and transport, postal and warehousing, which recorded growth of 0.4% and 0.6%, respectively.

Top 10 shareholders of SLC

The top 10 shareholders of SLC have around 31.88% shareholding in the firm. Agro Investments Limited and Perennial Value Management Ltd. have the highest stakes in the firm with a shareholding of 6.41% and 4.81%, respectively.

Recent business update

Through an ASX update dated 6 September 2024, the company notified that S&P Dow Jones Indices has introduced changes to the S&P/ASX Indices, following which SLC has been added to the S&P/ASX 300 Index. This change will come in effect before opening of trading on 23 September 2024.

Outlook

The company is optimistic about FY25, anticipating significant growth in underlying EBITDA due to increased market share with NBN and key contract wins.

In FY25, the company expects to deliver underlying EBITDA of AUD 83-88 million, marking a 53-62% increase over FY24, and expect capital expenditure of AUD 28-30 million.

The company’s focus is on organic growth, maintaining cost leadership and expanding its share of NBN services.

Share performance of SLC

SLC shares closed 3.19% higher at AUD 1.78 apiece on 9 September 2024 with a market cap of AUD 864.98 million. In the last one year, SLC’s share price has gone up by 152.48%, while in the last three months, the share price has increased by 28.52%.

52-week high of SLC is AUD 1.85, recorded on 2 September 2024, while 52-week low is AUD 0.58, recorded on 24 October 2023.

SLC Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 09 September 2024. The reference data in this report has been partly sourced from REFINITIV.