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A BRIGHT future is keeping investors holding Superloop (ASX: SLC) tight, with the telecommunications infrastructure company trading up this morning despite reporting negative earnings.
The Brisbane company, which has ramped up over the full year, today posted a statutory net loss of $7.2 million.
Superloop was trading at $2.90, almost 3 per cent higher, in half an hour after opening on the ASX this morning.
Superloop's earnings before interest, tax, depreciation and amortisation (EBITDA) was a loss of $5.6 million, compared to a loss of $3.5 million for FY15.
However, cash and term deposits totalled $45.9 million at June 30, sufficient reserves for Superloop to roll out planned projects. This figure is after Superloop invested $30.8 million over the year across Australia, Singapore and Hong Kong.
Superloop notes its annualised contracted recurring revenue hit more than $10 million by March 31, which was three months ahead of schedule.
This means revenue was up 558 per cent over the full year period.
Superloop CEO and founder, Bevan Slattery (pictured), says the past 12 months have seen significant growth and accelerating development.
"We have expanded through the acquisition of two strategic, profitable and growing businesses, APEX Networks and CINENET Systems, launched fibre optic networks in Australia and Singapore, commenced the construction of our network in Hong Kong, and achieved a number of sales and product milestones," says Slattery.
"Having worked in the telecommunications industry for many years and having built several successful telecommunications businesses, I am excited by the opportunities I see for Superloop. The industry within which we operate has strong structural growth drivers."
Slattery believes Superloop is operating in the right way in the right markets to capitalise on increased data transmission and storage, including higher bandwidth requirements from the rise in cloud computing, video on demand services and more connected devices.
"The Asia Pacific region is predicted to overtake North America as the largest generator of cloud traffic in the world and Hong Kong and Singapore have become the established hubs for data centres and international submarine cable capacity in the region," he says.
Australian operations - which went live in September - contributed revenue of $5.5 million, including $3.3 million from the acquired APEXN and $1 million from CINENET Systems.
Singapore delivered $1.5 million in revenue and customer transactions from launch in October 2015 through to June 2016.
The company is on track to roll out its 110km Hong Kong network by January. Part of this includes connecting the Hong Kong Stock Exchange data centre.
"Superloop continues to pursue its vision to become a leading independent owner and provider of connectivity services in the Asia Pacific region," says Slattery.
Read about the origins of Superloop, back in March 2015, and the company announcing its IPO in April 2015.
Also read why Business News Australia thinks Bevan Slattery is the telecommunications king of the ASX.
Superloop featured at number 36 on Brisbane Top Companies 2016.
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