Superloop on track to 1Bn Rev by 2028

Superloops Growth Strategy Analysis

Superloop employs a balanced growth strategy combining organic expansion and strategic acquisitions, with current emphasis shifting toward organic scaling

Growth Strategy Breakdown

Strategy Type	Components	Examples/Evidence	Impact
Organic Growth (Primary Driver)	- Customer acquisition (+62.6% YoY) - Market share gains (nbn up to 6.3%) - Product innovation (FTTP contracts, higher ARPU plans) - Wholesale partnerships (Origin, Leaptel)	- 37,000 net new Consumer customers in HY25 - 30.6% organic revenue growth - $20M marketing investment (FY22-FY23)	Accounts for ~70% of recent growth
Inorganic Growth (Strategic Supplement)	- Targeted acquisitions (Exetel, Uecomm)	- Uecomm acquisition adds 2,000km fibre - Origin migration: 130k customers - Exetel synergies ($5M+/year)	Accelerates infrastructure/customer base growth

Path to $1 Billion Revenue

Current Baseline (HY25):

• Half-Year Revenue: $258.1M 

• Annualized Run Rate: $516.2M

• Growth Rate: 30.6% YoY (organic)

Projections:

Scenario	Formula	Result	Timeline
Organic Only	$516.2M x (1.306)^n	$1.15B	2028
With Acquisitions	Add $50-100M/year from M&A	$1B+	FY27 (2027)

Key Variables:

• Uecomm Acquisition: Adds fibre assets (revenue contribution TBA) 

• New Contracts: Leaptel ($4-5M/3yrs), AV Jennings/Resimax FTTP deals

• Guidance: "Double Down" strategy targets 2x size by FY26, implying ~$800M revenue organically by 2026.

Strategic Catalysts

1. Operating Leverage:

   • EBITDA margins improved to 14.8% (HY25) vs. 10.4% (HY24)

   • Capex discipline: $15M HY25 reinvestment vs. $38.2M EBITDA

2. Market Trends:

   • Challenger brands now hold 19.8% nbn share

   • Consumer migration to higher-margin plans (ARPU growth)

3. M&A Potential:

   • $10.9M net cash position supports accretive deals

   • Focus on EBITDA-positive targets (e.g., Uecomm closes March 2025)

Risks & Considerations

• NPAT Drag: D&A from past acquisitions ($39.1M HY25) delays profitability until FY26

• Customer Concentration: Origin partnership contributes ~20% of HY25 Wholesale revenue 

• Competition: TPG/Vocus aggressively pursuing the same challenger-brand market

Superloop's hybrid model positions it to reach $1B revenue by 2027-2028, with upside potential from strategic M&A accelerating this timeline.

Comparison with Aussie Broadband

Metric	Aussie Broadband	Superloop
Revenue	$588.5 million	$258.1 million
Revenue Growth	6.80%	30.60%
Underlying EBITDA	$65.8 million	$38.2 million
EBITDA Growth	8.90%	66.20%
Net Profit/(Loss)	$12.16 million	($7.8 million)
Gross Margin	$217.6 million	$88.0 million
Gross Margin %	7.50%	28.00%
Customer Base	727,951 (broadband)	664,000
Customer Growth	12.50%	62.60%

Related

Telstras H1FY25 Results - Investors Lens