SUPERLOOP $2M LOSS DOES LITTLE TO KILL SLATTERY'S CONFIDENCE
Written on the 27 February 2017 by Business News Australia
BEVAN Slattery (pictured) is optimistic that Superloop's (ASX: SLC) financial position is promising, despite the company making a loss of $2 million during the half year.
While revenue was up a significant 351 per cent at $8.8 million, Superloop's EBITDA still suffered a $6.5 million loss following its acquisition of BigAir Group in December 2016.
According to CEO and executive chairman Slattery, the company's balance sheet remains strong due to the significant expansion of its fibre networks in the Asia Pacific and the achievement of several key operational milestones.
"Over the past six months we have established a platform to take advantage of the strong structural growth drivers across the region as we continue to pursue our vision to be a leading independent provider of digital services in the Asia Pacific region," says Slattery.
"Superloop has achieved major milestones in infrastructure development with the launch of the Company's network in Hong Kong and expansion of its network in Singapore."
In September 2016, Superloop raised $65 million in equity capital and increased its three-year debt facility with ANZ Bank to $80 million to fund its acquisition of BigAir.
During 1H17 the company also installed more than 160km of new fibre and completed installation and testing of its first 110km backbone fibre cable network in Hong Kong.
Slattery says completing these milestones puts the company in an able position to make good on its losses.
"The achievement of these significant milestones further demonstrates the exceptional efforts of our Hong Kong project team, our construction partner and our contractors' commitment and ability to deliver leading edge networks on time and on budget," says Slattery.
"Combined with our Australia and Singapore networks, we are uniquely positioned as a true Pan-Asian fibre network owner and operator."
Superloop shares have fluctuated since opening, trading down 0.2 per cent at $2.40 as of 10:08am AEDT.
The company has not declared an interim dividend.
Author: Business News Australia