Connectivity and broadband infrastructure provider Superloop (ASX: SLC) has reported a 533 per cent increase in revenue for the first half of FY18.
Driven by some key acquisitions, Superloop's revenue was up to $55.5 million in the first half of FY18, up from $8.8 million at the same time last year.
Profit after direct costs for the half was $30.8 million, up from $3.1 million at 1H17, and earnings reached $11.8 million.
The company made significant acquisitions in the first half, which drove this rapid growth.
In October 2017, Superloop acquired NuSkope, and in November 2017 the company acquired GX2 Holdings.
Also during the half the company successfully oversubscribed a round of capital raising, securing $20 million in investment.
Superloop CEO Bevan Slattery (pictured) says the company's performance in the half was impressive.
"Over the past six months we have continued to grow at a fast pace," says Slattery.
"The growth in revenue and earnings over the first half last year reflects our regional growth strategy and further strengthens the company's long term aspirations. Operationally, we have focused on integrating networks and systems across Australia and the Asia Pacific region, while also acquiring strategic bolt-on businesses that complement our existing capabilities."
The group's Australian network revenue was up 227 per cent to $20.4 million during the half, including $10.6 million from the acquired Fixed Wireless network and $3.5 million from the development of the INDIGO cable system.
The group's NPAT of $1.8 million included $0.2 million of one-off transaction costs associated with the acquisitions of NuSkope and GX2.
From 13 October through to 31 December 2017, NuSkope contributed revenue of $1.9 million and earnings of $1 million to the group's overall result.
GX2 contributed revenue of $1.1 million from installation, ongoing management fees and hardware sales, and earnings of $0.1 million.
The group also reported operational milestones in the INDIGO subsea cable project, which is set to be completed ahead of schedule in H1 FY19.
In addition to its results, Superloop has announced it has commenced the development of a new national infrastructure project to connect all Australian cities and towns.
This new project will form part of Superloop's network, and will double the group's metropolitan fibre footprint.
Shares in Superloop are up 0.93 per cent to $2.17 per share at 12.17pm AEDT.
Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Get our daily business news
Sign up to our free email news updates.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support