Swoop grows revenue by 17% in first half of FY24

Fixed wireless and residential internet provider Swoop has reported strong revenue growth for first half of the 2024 financial year, crediting organic growth of its internet and mobile services.

For the six months ending 31 December 2023, the company grew revenue by 17 per cent to $43.5 million on the back of "record sales across our key products of FW [fixed wireless] broadband, NBN, mobile and voice," Swoop's CEO Alex West said.

The company attributed the revenue increase to organic growth of 11 per cent in 1H FY23, which saw its number of subscribers jump by 16 per cent to 161,335, in addition to contributions from its Regional Connectivity Program in Victoria and Western Australia.

Swoop said its organic growth included that derived from its eight acquired entities, which most recently included Moose Mobile for $24 million in November 2022 and Sydney voice provider Seventeen for $400,000 in December 2022.

Moose Mobile now provides 118,000 mobile services, up from 94,000 when it was first acquired.

“The sustained increase in our revenue, fuelled primarily by organic growth, demonstrates the strong demand for dependable internet and mobile services supported locally, which continues to withstand the impact of rising living costs,” West said.

Swoop also posted a statutory net loss after tax of $1.04 million, down from $4.24 million in 1H FY23.

The company attributed the year-on-year reduction to "growth in the underlying business, tight cost control and lower depreciation/amortisation following FY23 impairment charges."

Swoop said its operating expenses and overhead as a proportion of revenue was 21 per cent, down from 23 per cent in 1H FY23, while online sales had driven a 20 per cent decline in its customer acquisition costs.

It also revealed that over 90 per cent of its product orders were processed via fully automated workflows.

"Whilst well progressed, our focus for the half was to continue to integrate and simplify our offerings to our customers, making us easy to deal with via increased automation and self service options," said West.

"We will continue our strong focus on managing costs and improving operational efficiencies as we continue to see acquisition synergies flow through."

"Along with the Board, the Executive and the entire Swoop team are looking forward to continued success in the remainder of FY24 and beyond."