The Superloop (ASX:SLC) share price plummets 8% despite revenue lift

The Superloop share price is falling sharply today, down 8% in late morning trade. We look at the latest financial results.
The post The Superloop (ASX:SLC) share price plummets 8% despite revenue lift appeared first on The Motley Fool Australia. –

Red arrow downward chart

The Superloop Ltd (ASX: SLC) share price is falling sharply today, down 8.2% in late morning trade. This comes after the release of the company’s half-yearly report.

We take a look at the company’s latest half-year financial results (H1 FY21) and the current share price.

What did Superloop report for H1 FY21?

This morning’s ASX release, reporting a 3.8% lift in total revenues to $53.3 million, failed to keep the Superloop share price from falling.

Superloop’s Connectivity Revenue increased 15% over the prior corresponding period (PCP) to $30.2 million. Additionally, its Broadband Revenue increased by 27% to $18.5 million. Home Broadband subscribers grew by 66% year-on-year to reach 39,000. The company reported a slowdown in its Student Accommodation and Hospitality revenue due to the impact of COVID-19.

The company highlighted the strong growth in earnings before interest, tax, depreciation, and amortisation (EBITDA), which grew 99% from the prior corresponding period to $8.2 million.

Superloop reported an overall loss from ordinary activities after income tax of $18.8 million, an 11.7% improvement on the $21.4 million loss in H1 FY20.

Capital expenditure declined year-on-year, to $8 million from $12 million in H1 FY20.

The company will not pay a dividend for the half-year period.

Comments from the CEO

Regarding the half-year results, Paul Tyle, Superloop CEO said:

With record results across all our major financial metrics H1 21 clearly demonstrated the strong momentum in each of our three customer segments, we remain confident that our strategy will see this progress continue into the future.

Looking ahead, Superloop re-affirmed its full 2021 financial year EBITDA guidance of $18– $20 million. It noted that with the continued COVID impact on the Education and Hospitality sectors, the lower end of that range is more likely.

Superloop share price snapshot

Despite today’s losses, Superloop shareholders are still sitting on a 16% gain over the past 12 months. That compares to a 0.3% loss on the All Ordinaries Index (ASX: XAO).

So far in 2021, the Superloop share price is down 9%.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of SUPERLOOP FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post The Superloop (ASX:SLC) share price plummets 8% despite revenue lift appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!