Swoop revenue surges from acquisitions, organic growth

Telco Swoop has reported its strongest annual revenue growth to date, citing contributions from acquisitions and focus on cost control and targeted growth.

In the year ended 30 June 2023, the ASX-listed telco reported revenue of $78.2 million, up 51 percent year over year from $51.7 million.

Underlying earnings before tax was $16.3 million, up 25 percent from last year’s $13 million.

Swoop also posted a net loss after tax of $37.5 million, compared to a loss of $5 million in 2022, with a $27 million impairment charge impacting the numbers.

The company said the growth was buoyed by a focus on cost control and targeted growth, while also continuing to integrate and build on the previous seven acquisitions.

Its latest acquisition, Moose Mobile, was completed in November 2022, bringing in 111,000 services into Swoop’s fold.

“We have had another fantastic year - with the strategic acquisition of Moose we launched Swoop into new markets and new services that we saw continue to thrive throughout the year,” Swoop chief executive Alex West said.

“Our growth in revenues, both via the Moose acquisition and organic growth, shows the high demand for reliable, locally supported internet and mobile services in a post pandemic hybrid working environment that remains resistant to pressures from increases in the cost of living.”

West said the company continued its focus on managing costs and cash flow, along with integration synergies flowing through to the bottom line to help deliver its first quarter of positive free cash flow heading into FY 2024 of $14.3 million.

“This discipline in capital management, with our remaining Westpac financing facilities and cash balance all providing for a strong position to react quickly to growth opportunities in a potentially changing market," West added.

“The acquisition of Moose further consolidates our position of being well on track to creating the next national Australian telco."

"Along with the board, the executive and the entire Swoop team are looking forward to an equally successful FY24.”