Superloop (ASX:SLC) - Founder & former CEO, Bevan Slattery
Founder & former CEO, Bevan Slattery
Source: CIO Australia
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  • Network developer Superloop (SLC) has met its FY20 earnings guidance, bringing in $13.5 million for the year
  • While the figures are unaudited, they’re a good indication of what’s to come when the company releases its final accounts next month
  • In May, SLC forecast it would net between $12 million and $15 million in earnings before interest, taxes, depreciation and amortisation (EBIDTA) in FY20
  • Additionally, Superloop expects to deliver $107 million in group revenue
  • All up, the revenue result marks around 37 per cent year on year growth
  • However, today’s news dragged SLC shares down over 2.5 per cent
  • Company stock spent late afternoon trade priced at $1.15 per share

Network developer Superloop (SLC) has met its FY20 earnings guidance, bringing in $13.5 million for the year.

While the figures are unaudited, they’re a good indication of what’s to come when the company releases its final accounts next month.

In May, SLC forecast it would net between $12 million and $15 million in earnings before interest, taxes, depreciation and amortisation (EBIDTA) in FY20.

Superloop says that range reflected a reduction on its previous guidance as it weighed up the economic effects of COVID-19. Given the companies exposure to Hong Kong and Singapore, the pandemic’s effects could impact its overall earnings.

Turning to sales, Superloop expects to deliver $107 million in group revenue. The company says the result is underpinned by the strong sales performance of its fibre connectivity branch.

Its first-half FY20 results, the division brought in $7.8 million in annualised revenue — for the full year, it’s expected to deliver $16.4 million, a 46 per cent spike compared to last financial year.

All up, the revenue result marks around 37 per cent year on year growth for SLC — if you leave off its subsea development and one-off revenue stats.

“Superloop is in a strong position to continue to achieve sustained growth and monetise its unique network assets, through traffic growth and operational leverage as business and working practices migrate towards the cloud,” the company told the ASX today.

Superloop, founded by Aussie entrepreneur Bevan Slattery, provides connectivity solutions for home, business and wholesale clients. The company’s full FY20 results are expected on August 24.

Today’s news dragged SLC shares down over 2.5 per cent — company stock spent late afternoon trade priced at $1.15 per share.

SLC by the numbers
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