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Expansion costs leave Superloop with $7.2 million net loss

Expansion costs leave Superloop with $7.2 million net loss

Dark fibre provider hit by infrastructure and acquisition costs

Credit: Dreamstime

Acquisitions and infrastructure investment has left dark fibre provider, Superloop (ASX: SLC), with a statutory net loss after tax (NPAT) of $7.2 million off the back of $7 million in revenues and other gains for the financial year ending June.

Superloop, which was spun out of network virtualisation company, Megaport, reported earnings before tax (EBITDA) of $-5.6 million, citing direct network costs of $5.1 million, and indirect operating costs of $7.6 million.

The company, which operates more than 300 kilometres’ worth of fibre network in Australia and Singapore, has spent much of the past year expanding its footprint in the region.

Superloop is establishing a 110 kilometre-long fibre optic network connecting 30 strategic sites in Hong Kong, where it is also constructing the so-called TKO Express, a submarine cable connecting sites in Hong Kong to the mainland.

“Over the past 12 months we have seen significant growth and accelerating development in Superloop,” said Superloop executive chairman and CEO, Bevan Slattery. “We have expanded through the acquisition of two strategic, profitable, and growing businesses, ApexNetworks and Cinenet Systems, launched fibre optic networks in Australia and Singapore, commenced the construction of our network in Hong Kong, and achieved a number of sales and product milestones.”

Superloop acquired Brisbane-based network solutions and services provider, ApexNetworks, in October last year for $5.8 million, and paid $3 million for high-speed network provider, Cinenet Systems, in November 2015.

Additionally, the latest figures show that Superloop invested $30.8 million during the year developing fibre infrastructure assets across Australia, Hong Kong, and Singapore.

The company also revealed that it had contracted annualised recurring revenue of over $10 million as of the end of March this year, and had contracted annualised recurring revenue of over $11.9 million at the end of June.

Superloop told investors that it expects to complete the construction of its Hong Kong network by January next year, while additional sites will be added to networks in Singapore and Hong Kong during the 2017 financial year.

“With expanding networks in place across Australia, Singapore, and Hong Kong, the group will have established a platform to leverage its core infrastructure assets and drive further growth and customer acquisition,” said Slattery. “Superloop continues to pursue its vision to become a leading independent owner and provider of connectivity services in the Asia Pacific region.”

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Tags AustraliaBevan Slatterydark fibre networkMegaportSuperloop

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