The Superloop Ltd (ASX: SLC) share price is down 13% or 20 cents to $1.34 this morning after the Australia and South East Asia-focused fibre-optic internet infrastructure business handed investors a whopping downgrade to its full year EBITDA guidance.
For FY 2019 Superloop is now guiding for full year EBITDA to come in between $7 million to $8 million, compared to prior guidance for EBITDA between $13 million to $18 million.
The company blamed the downgrade on it not completing a single “commercial agreement” before June 30 2019 and flagged that negotiations are continuing with the potential client and if a deal is signed it will be reflected in future earnings.
As such whether or not this significant deal is signed is an unknown for investors with the uncertainty and additional disappointment around the downgrade likely to weigh on the share price.
The company also noted that despite the revised guidance it remains within its debt covenants to suggest the balance sheet is now under increasing pressure after it only recently raised $30.9 million at $1.25 per share.
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