Highlights

  • Swoop signed a binding agreement on 23 October 2026 to sell its Sydney fibre assets for about $4.5 million.
  • Cash closed the September quarter at $5.907 million, down from $8.859 million at the start.
  • Mobile and NBN retail services slipped by fewer than 7,000 to about 167,000 as customers migrated to TPG Telecom.
  • Westpac facilities of $21.983 million are fully drawn and expire in June 2027, with funding estimated to last 4.3 quarters.

Two sales, one buyer. Swoop Holdings (ASX:SWP) has now agreed to sell both its Sydney fibre assets and its Melbourne Fibre Project to Xenith IG Australia Holdings, and its first-quarter FY27 update shows how the cash, debt and customer numbers sit while those deals wait to close.

A second fibre sale

The binding agreement signed on 23 October 2026 covers the Sydney fibre assets, priced at about $4.5 million. The buyer, Xenith IG Australia Holdings, is also the buyer of the Melbourne Fibre Project, priced at $11.0 million.

The Melbourne sale is awaiting approval from the Foreign Investment Review Board, with a decision expected in the second quarter of FY27. The Sydney transaction is conditional on that approval and other conditions, and Swoop expects to receive proceeds in the third quarter of FY27. The Sydney proceeds are intended for debt reduction and working capital. Both are agreed sales that have not yet completed, so neither set of proceeds is in the bank.

Cash flow in the quarter

Receipts from customers were $33.86 million. Product and operating costs were $27.249 million, advertising and marketing $1.328 million, staff costs $4.918 million and administration and corporate costs $1.85 million. Net operating cash flow was negative $2.004 million, which sets the quarter's scale against $33.86 million of customer receipts.

Investing activities produced a net inflow of $446,000, helped by $895,000 from disposal of property, plant and equipment and $688,000 from disposal of businesses. Equipment payments of $416,000 and intangible asset payments of $661,000 partly offset those. Financing outflows were $1.393 million, including $551,000 of borrowing repayments and $842,000 of lease payments.

Cash fell by $2.952 million to $5.907 million, with bank balances making up $5.892 million and call deposits $15,000. Customer receipts less product and operating costs were $6.6 million, up from $5.3 million in the previous quarter.

Customers and the TPG partnership

Combined mobile and NBN retail services fell by fewer than 7,000 to about 167,000, excluding wholesale. Churn from the migration of mobile customers from Optus to TPG Telecom was lower than expected.

Swoop signed a mobile wholesale partnership with TPG Telecom on 16 June 2026. The company expects it to improve margins through better commercial terms, which is management expectation rather than a result. There was no formal revenue or earnings guidance.

Debt and liquidity

Secured loan facilities with Westpac total $21.983 million and are fully drawn. A $2 million overdraft is undrawn, and a corporate card facility of $859,000 has $57,000 drawn. Total facilities are $24.842 million, with $22.04 million drawn and $2.802 million unused.

Interest runs at about 3 per cent over BBSY, reset quarterly. The five-year Westpac facilities expire in June 2027.

Including unused facilities, total available funding is $8.709 million, which the company estimates equates to 4.3 quarters at the current rate of cash burn. Because that is above two quarters, the additional going-concern questions in the Appendix 4C were not required. Payments to related parties were $122,000 for director fees.

Strategy and next milestones

Swoop describes its strategy as simplifying the operating portfolio, strengthening the balance sheet and growing profitable NBN and mobile customers. It serves residential, business and wholesale customers across its national network through the Swoop and Moose brands.

The confirmed milestones ahead are the Foreign Investment Review Board decision on the Melbourne sale in the second quarter of FY27, receipt of Sydney proceeds in the third quarter, and the June 2027 facility expiry.