Superloop has grown its revenue in the last half-year thanks to contributions from its connectivity and broadband businesses.
The network provider raked in $60 million in the six months ended 31 December, up 18 percent from $51 million in the same period the previous year. Its connectivity business contributed the most with $25.2 million, up 7 percent from last year, while broadband was up 107 percent to $20.3 million.
However services took a hit, with revenue declining to $14 million, down from $18 million in 2017. The business was impacted by lower equipment and software reselling, as well as the company’s increased focus on networks.
Despite the revenue growth, Superloop widened its losses to $8.7 million, up 390 percent from last year’s loss of $1.8 million.
Also during the period, the company reached 77 out of 121 NBN points of interconnect, completed the final splice on the INDIGO subsea telecommunications cable system and increased its fibre network to 758 km across Australia, Singapore and Hong Kong.
“We are now nearing completion of the transition phase and entering the leverage phase which will start to generate significant returns with expected strong growth in gross margin,” Superloop chief executive Drew Kelton said.
Superloop also announced a $30 million capital raising with the aim of paying down debt and increasing its funding capacity, specifically for investments in infrastructure, network expansion, acquiring cash-generating assets and provide general working capital.
“We are building a business that is focused on scalable, repeatable and profitable services based on a core portfolio of on-net connectivity products,” founder Bevan Slattery said.