Superloop rallies after unveiling Lynham Networks acquisition
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More news: Shares in Superloop rallied in morning trade after the company posted a $5.1 million half-year profit result and entered an agreement to acquire 100% of Lynham Networks for $165 million.
Shares climbed 15.70% to $2.80 at 1:35pm AEDT.
Jarden analyst Liam Robertson maintained a buy rating on the stock, setting a target price of $3.25 citing strong results, achievable guidance and confidence in the outlook.
UBS analyst Evan Karatzas also reiterated a buy view, saying the result addressed bearish investment concerns.
Superloop posts $5.1m half-year profit, unveils Lightning Broadband acquisition
The news: Superloop has swung to a $5.1 million half-year profit and announced it has entered a share purchase agreement to acquire 100% of Lynham Networks, the parent company of Lightning Broadband, for $165 million.
The numbers: Revenue for the six months to the end of December lifted 23.3% compared to the previous corresponding period to $317.6 million. Underlying EBITDA lifted 46% to $55.8 million.
No dividend was declared for the period. Guidance for FY26 underlying EBITDA was increased to the range between $112 million and $120 million, up from the previous guidance range of between $109 million and $117 million
The context: Superlopp’s NBN market share increased to 7% and added 49,000 new customers to its consumer segment. The company also signed new contracts at its business segment and saw wholesale customers lift by 20,000.
During the period, Superloop acquired Frontier Networks, which “materiallly accelerates” the company’s Smart Communities strategy to deliver fibre optic solutions to new developments.
Barrenjoey advised Superloop on the Lynham Networks acquisition.
The source: ASX
