Key Highlights

  • Group customers reached 954,000 at 31 October 2026, up 18,500 since 30 June 2026.
  • FY27 underlying EBITDA guidance is $148 million to $156 million, representing growth of 21 to 27 per cent on FY26.
  • Capital expenditure is expected to rise to $58 million to $62 million, from $37.9 million in FY26.
  • Wholesale subscribers fell by 6,800 to 31 October, reflecting seasonality, while Smart Communities contracted 10,000 new lots in the first quarter.

Superloop Limited (ASX:SLC) has provided a trading update for the period from 1 July to 31 October 2026, alongside guidance for the financial year ending 30 June 2027. The telecommunications and connectivity company reported group customers of 954,000, and set underlying EBITDA guidance of $148 million to $156 million. The update, issued on 10 November 2026, also gave detail on how each of the company's three customer segments performed during the first four months of the year.

Customer Growth Across Consumer, Business and Wholesale

Consumer customers increased by 19,300 in the first quarter and by 23,000 to 31 October, taking the consumer base to 524,400. The company said this growth came despite a price rise that increased churn in July and August, and noted that there was no comparable price increase in the prior corresponding period. Consumer growth is the largest contributor to the overall figure.

Business customers rose by 1,700 in the first quarter and by 2,300 to 31 October, with growth in small business internet services, large corporate office locations and Smart Communities. Smart Communities contracted 10,000 new lots in the quarter, taking total contracted lots to 200,000. The Wholesale segment was softer, with subscribers down 6,400 in the first quarter and 6,800 to 31 October, which the company attributed to normal first-quarter seasonality. Traditional wholesale on-net wins, including backhaul and subsea capacity, are expected to add more than $3.6 million in annualised Revenue after migration.

Breaking Down the FY27 Earnings Guidance

The company is guiding underlying EBITDA of $148 million to $156 million for FY27, compared with $122.7 million in FY26. That represents growth of 21 to 27 per cent. Superloop attributes approximately $11.0 million of the increase to the Lynham acquisition, while an expected reduction of about $3.8 million relating to AGL offsets part of the gain. The remaining increase of $18.1 million to $26.1 million is attributed to underlying growth across the business.

Underlying EBITDA is a non-IFRS measure calculated from net profit after tax, adjusted for tax, interest, Depreciation and amortisation, share-based consideration, restructuring costs and M&A-related costs. The company's guidance is therefore based on its own definition, which differs from statutory reporting and should be read alongside statutory results when they are released.

Capital Spending and Cost Structure

Capital expenditure for FY27 is expected to be between $58 million and $62 million, up from $37.9 million in FY26. The increase is mainly due to Smart Communities capital spending of $16 million to $18 million and integration Capital Expenditure of approximately $4 million for Lynham. Capital expenditure covers Investment in network, technology and customer infrastructure that will be paid during FY27.

Superloop has previously highlighted its operating model as a cost advantage. In its longer-term Supercharge29 strategy, the company refers to operating expenses falling from 17.3 per cent of revenue in FY24 to 13.5 per cent in FY26. These are ambitions and targets rather than guidance, and the company notes that they carry greater risks and uncertainties than its current-year forecasts.

Market Position and Risks

Superloop says its share of the nbn retail market has grown from zero to 8.5 per cent over the past five years, while incumbent providers' share has fallen from 91.8 per cent to 72.0 per cent. Challenger brands, including Superloop, have collectively increased their share to 28.0 per cent. The company links its growth to annual price changes, household moves and technology upgrades, but these drivers can also prompt customers to switch providers, which contributed to higher consumer churn.

The guidance carries several risks. The Lynham integration must deliver its expected contribution, the AGL reduction reduces earnings, and the increase in capital expenditure will absorb cash. The company's Wholesale subscriber base also declined over the period, and any further churn in consumer or wholesale customers would weigh on the outcome.

Final Word

Superloop's guidance rests on customer growth in the consumer and business segments, the contribution of recent acquisitions and continued expansion of its Smart Communities network. Against that, higher capital spending, lower contributions from AGL and softer wholesale subscriber numbers provide a more mixed picture for FY27. The next checkpoints will be the company's half-year results and whether consumer churn settles after the price changes, as the guided EBITDA range depends on those trends.