SUPERLOOP EDGES CLOSER TO FIRST REVENUE
Written on the 1 September 2015
BEVAN Slattery's (pictured) start-up Superloop (ASX:SCL) has hit the ground running since listing earlier this year, confirming it is on track to complete its initial Singaporean and Australian fibre-optic networks in the current quarter.
The company, which posted a bottom-line loss of $1.19 million for FY15, says it expects to start generating revenue soon from its high-speed data services as its rolls out its strategy to become a leading independent provider of connectivity services in the Asia Pacific region.
The company says it has kicked off the activation of cornerstone and new business customer services. It also says contracted recurring revenues will exceed direct monthly network operating costs of the company's existing Singaporean and Australian networks once services begin.
The latest financial result reflects minimal revenue for the company, other than minor interest income, although the result has been buoyed by a $3.4 million exchange-rate gain.
Superloop's highlights of the past year include the company's Hong Kong subsidiary being granted a licence to provide fixed internal telecommunications services in that country.
Slattery, Superloop's executive chairman, also says Superloop has acquired an exclusive 15-year right to 130km of fibre network throughout major Australian metropolitan areas, delivering systems to Brisbane, Melbourne and Sydney.
Broadening its horizons further, the company also secured 120km of underground duct assets connecting major data centres throughout Singapore with a view to eventually reaching other key markets within the region.
"In Q3 CY2015 these networks are expected to be fully operational and will connect key strategic locations within their markets," says Slattery.
"Superloop will continue to assess other Asian markets where it believes similar opportunities exist to expand the business."
The company's operating expenses in FY15 totalled $3.2 million, made up largely of $1.13 million in employee expenses and $1.73 million in professional services.
The company's shares, which were issued at $1 each and have risen as high as $2.48, have a net asset backing of 55c.