Superloop revenue grows 5x in six months after NuSkope, GX2 acquisitions

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Superloop revenue grows 5x in six months after NuSkope, GX2 acquisitions
Bevan Slattery, Superloop

Superloop’s acquisitions of internet service provider NuSkope and campus broadband provider GX2 Technology helped the company grow revenue more than 500 percent while expanding its portfolio and customer base.

The network provider posted revenue of $55.5 million for the six months leading up to 31 December 2017, up 533 percent from $8.8 million in the same period the previous year.

Superloop turned a net profit of $1.8 million, compared with a net loss of $2 million in the corresponding period in FY17. Earnings were also positive this time round at $11.8 million, compared with a loss of $6.5 million last year.

“Over the past six months we have continued to grow at a fast pace," said Superloop chief executive Bevan Slattery. "The growth in revenue and earnings over the first half last year reflects our regional growth strategy and further strengthens the company’s long term aspirations.

“Operationally, we have focused on integrating networks and systems across Australia and the Asia-Pacific region, while also acquiring strategic bolt-on businesses that complement our existing capabilities.”

Superloop acquired Adelaide wireless broadband provider NuSkope in September for $10 million, followed by the $12 million acquisition of GX2 in November.

The company had one-off transaction costs of $200,000 stemming from the acquisitions, as well as $500,000 in costs relating to the 2016 acquisition of telco and managed services provider BigAir.

Its cloud and managed services business, Superloop+, saw revenue grow from $16.8 million to $18 million thanks in part to contributions from BigAir, which it acquired in late 2016.

The broadband services business Superbb contributed $9.8 million in revenue, up from $100,000 in the previous corresponding period. Campus Broadband Solutions, NuSkope and GX2 contributed $6.8 million, $1.9 million and $1.1 million, respectively.

“Over the first half, not only did we complete two strategic acquisitions, importantly we focused on integrating the networks and systems of all our acquired businesses,” Slattery said.

“The benefits from successful integration will deliver cost savings and revenue synergies, to drive increased revenue and earnings in future periods.”

Superloop also announced that the Indigo subsea cable project, a consortium it became a part of after acquiring telecommunication infrastructure provider SubPartners in April for $3.3 million, is set to be completed ahead of schedule in the first half of the 2019 financial year.

The consortium is an agreement with Alcatel Submarine Networks (ASN) to build a new international subsea cable system that will connect Australia, Singapore and Indonesia.

“Our second half will see continued focus on operational improvements and efficiency while further building out our networks in Australia, Hong Kong and Singapore,” Slattery said.

“We have significant opportunities to continue expanding our access networks to major commercial buildings in these three countries, while hyperscaling our microwave network offering in Australia.”

He added that the managed service business has continued to grow thanks to the BigAir and GX2 acquisitions, and is looking to further expand in Singapore and Hong Kong.

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