Swoop reports 5% bump in revenue for first half of FY25

Fixed wireless and wholesale network infrastructure provider Swoop has reported financial and operational results for the first half of FY25, achieving $45.8 million in revenue, a 5 percent year-over-year (YoY) increase.

The ASX-listed telco also reported a 15% percent organic growth in underlying recurring revenue, as well as a positive NPAT of $2.0 million, on top of completing the $8.8 million divestment of its wholesale voice business in July 2024.

In the first half of FY25, Swoop focused on streamlining operations through automation and product specialisation, driving organic growth from previous investments. This contributed to a 12 percent increase in Core Business EBITDA, with Underlying EBITDA reaching $7.3 million.

Since listing in May 2021, Swoop has completed nine acquisitions as part of its expansion strategy across Australia, including the acquisition of Moose Mobile in November 2022 for $24 million, which at the time added over 94,000 users to Swoop's portfolio.

Today, that number has risen to more than 128,000, with total subscriber numbers increasing by 24% since December 2023, all from organic growth. Operational efficiency has also improved, with operating expenses now at 20% of revenue, a 15% reduction over the past three years.

As of 31 December 2024, the company has $15.5 million in available funding.

Swoop recently signed a three-year agreement to provide wholesale internet services to Flip, which is expected to generate over $10 million in annual revenue with further upside as the subscriber base expands

Swoop has also begun building a 300-kilometer owned fibre network, enhancing coverage for 42,000 businesses and approximately 450,000 residential premises. This initiative is backed by a long-term contract of up to $36 million with a Nasdaq-listed global technology company. 

Swoop CEO Alex West said with the majority of the company’s integrations now complete, a streamlined business model, advanced automation and focus on core products have led to significant growth in the recurring revenue base.

“We’ve successfully balanced being a competitive reseller while advancing our infrastructure capabilities, enabling us to drive sustainable growth and profitability,” he said.

“Swoop has achieved record-breaking sales in 1H FY25 across our core products, including fixed wireless broadband, NBN, and mobile. Over the past 12 months, we’ve doubled our NBN market share, reinforcing the demand for our services and our commitment to delivering high-quality connectivity solutions.

“With a strong foundation in place, we are confident in our ability to drive further success in the second half of FY25 and beyond.”