Swoop Holdings Limited (ASX:SWP): How Is Its Telecommunications Strategy Changing?

Aditi Sarkar

13 October 2026 04:14 AM AEDT

Swoop Holdings Limited (ASX:SWP): How Is Its Telecommunications Strategy Changing?

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Highlights

FY26 revenue reached A$115.9 million, with annual growth of 21.8%.
The company reported approximately 73,000 broadband services and 133,000 mobile services.
Underlying FY26 EBITDA was A$6.1 million, lower by A$2.8 million.
A three-year mobile wholesale agreement commenced, with customer transitions planned for FY27.
The company agreed to dispose of its Melbourne fibre network as part of a portfolio review.

Swoop Holdings Limited (ASX:SWP) provides broadband, mobile and business telecommunications services in Australia. Its offering spans fixed wireless, fibre-based internet connections, business connectivity and retail mobile plans. During FY26, Swoop pursued growth in core services while reviewing non-core assets and changing its mobile wholesale arrangements. These measures reflect a broader shift towards focusing resources on services with recurring customer demand.

Customer Services Expanded in FY26

Swoop Holdings Limited (ASX:SWP) reported FY26 revenue of A$115.9 million, an increase of 21.8% over the previous financial year. The company disclosed approximately 73,000 broadband services, up 23%, and 133,000 mobile services, up 5%. Total services in operation were approximately 224,000, reflecting growth across its customer base.

The FY26 results describe expansion in core broadband and mobile activities, partly offset by declines in legacy operations. The figures show growth in the number of services but do not establish that all connections use Swoop-owned infrastructure. Retail broadband can involve both the company’s network assets and wholesale access arrangements.

Network Ownership and Regional Connectivity

The company provides fixed wireless and business internet connectivity, alongside fibre and network services. Owning infrastructure can give telecommunications providers more control over service quality and network economics; however, investment in towers, backhaul, maintenance and power remains necessary. Swoop Holdings Limited (ASX:SWP) must balance the cost of expanding coverage with the commercial demand in each service area.

For regional customers, fixed wireless can offer an alternative where fibre access or upgrade options are limited. Service quality is influenced by capacity, installation conditions, weather and upstream connectivity. The company’s disclosures do not establish the precise number of newly commissioned regional towers or particular network performance improvements asserted in the supplied draft.

Profitability Affected by Supplier Costs

Despite revenue growth, Swoop Holdings Limited (ASX:SWP) reported FY26 gross profit of A$31.7 million, compared with A$32.3 million in the previous reporting period. Underlying EBITDA declined by A$2.8 million to A$6.1 million. The company attributed the earnings pressure partly to higher mobile wholesale charges and marketing expenditure supporting growth.

Operating expenses were A$25.7 million, representing 22% of revenue, compared with 25% previously. The underlying EBITDA measure is non-IFRS and differs from statutory earnings. It should be read together with operating cash flow and depreciation, which reflect the demands of a telecommunications business.

New Mobile Arrangement and Asset Sales

In June 2026, the company announced a three-year wholesale mobile agreement. The arrangement became operational, with customer migration scheduled during the first quarter of FY27. Swoop Holdings Limited (ASX:SWP) said increased charges from its previous supplier had not been fully passed on to customers, making the transition relevant to future margins.

Swoop also pursued the sale of selected assets. It disposed of its Vonex shareholding in October 2025 and announced an agreement in June 2026 to sell its Melbourne fibre network. At the FY26 results announcement, completion of the fibre disposal was anticipated during the first half of FY27, with approximately A$11 million expected to be released. An anticipated transaction receipt is not the same as completed cash proceeds.

Operational Risks and Reporting Focus

The strategy of Swoop Holdings Limited (ASX:SWP) carries execution risks. Supplier migration can affect customer retention and service delivery, while telecommunications infrastructure is exposed to equipment failures and weather disruption. Competitive pricing and higher network access charges may also constrain gross margins. Subsequent results will show whether subscriber expansion is accompanied by improved cash generation.

Key Insights

For Swoop Holdings Limited (ASX:SWP), FY26 growth in broadband and mobile services coincided with lower underlying earnings. The mobile supplier change and portfolio divestments are important parts of the 2026 operating strategy. Future disclosures on gross profit, service numbers, asset sales and cash flow will help establish the financial effect of those changes.

FAQs

Q: What is Swoop Holdings’ ASX code?

A:The company is quoted under ASX:SWP.

Q: What revenue did Swoop report for FY26?

A:A$115.9 million.

Q: How many mobile services did it report?

A:Approximately 133,000 at FY26 year-end.

Q: What was FY26 underlying EBITDA?

A:A$6.1 million, a non-IFRS measure.

Q: What is a key FY27 operational development?

A:The transition of mobile customers under the new wholesale agreement.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.