Superloop has signed an exclusive six-year contract to provide wholesale internet services to Origin Energy, marking the end of its white label agreement with Aussie Broadband.
The deal will see Superloop migrate Origin’s 130,000 broadband customers to its own network in the 2025 financial year.
The company expects to generate over $19 million of annualised earnings before interest, tax, depreciation and amortisation (EBITDA) from the deal.
In consideration for the contract award, Origin was issued 9,847,690 Superloop shares upfront on signing and will receive another 9,847,690 Superloop shares when its 130,000 customers are migrated to its network.
Superloop estimates it will have approximately 560,000 customers once Origin's 130,000 broadband customers are migrated to its network.
“Securing the Origin contract is a key progress milestone in Superloop’s three-year growth strategy,” Superloop's CEO Paul Tyler said.
"It delivers a step-change in our customer numbers and cements our market position as a leading wholesale broadband and backhaul provider."
"In order to create strong alignment and pursue growth in broadband customers, we are delighted to welcome Origin as a shareholder and to issue it an option to acquire further shares."
“Australia’s energy retailers are investing heavily in product bundling and we are very pleased to be the partner of choice for reliability, service and value.”
Tyler said Origin's subscriber base grew by 21,000 subscribers in the first two months of the 2024 calendar year, adding to the 40,000 subscribers acquired in the six months to December 2023
"With accelerating growth in our consumer segment and the record H1 sales backlog ($9 million annualised new sales) in wholesale which will all be billing by the end of the half, Superloop expects to continue strong growth in FY25," he said.
This has seen Origin upgrade its expected underlying EBITDA range for the 2024 financial year from $49-53 million to $51–53 million.
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