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The Superloop (ASX:SLC) share price plummets 8% despite revenue lift

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The Superloop Ltd (ASX: SLC) share price is falling sharply today, down 8.2% in late morning trade. This comes after the release of the company’s half-yearly report.

We take a look at the company’s latest half-year financial results (H1 FY21) and the current share price.

What did Superloop report for H1 FY21?

This morning’s ASX release, reporting a 3.8% lift in total revenues to $53.3 million, failed to keep the Superloop share price from falling.

Superloop’s Connectivity Revenue increased 15% over the prior corresponding period (PCP) to $30.2 million. Additionally, its Broadband Revenue increased by 27% to $18.5 million. Home Broadband subscribers grew by 66% year-on-year to reach 39,000. The company reported a slowdown in its Student Accommodation and Hospitality revenue due to the impact of COVID-19.

The company highlighted the strong growth in earnings before interest, tax, depreciation, and amortisation (EBITDA), which grew 99% from the prior corresponding period to $8.2 million.

Superloop reported an overall loss from ordinary activities after income tax of $18.8 million, an 11.7% improvement on the $21.4 million loss in H1 FY20.

Capital expenditure declined year-on-year, to $8 million from $12 million in H1 FY20.

The company will not pay a dividend for the half-year period.

Comments from the CEO

Regarding the half-year results, Paul Tyle, Superloop CEO said:

With record results across all our major financial metrics H1 21 clearly demonstrated the strong momentum in each of our three customer segments, we remain confident that our strategy will see this progress continue into the future.

Looking ahead, Superloop re-affirmed its full 2021 financial year EBITDA guidance of $18– $20 million. It noted that with the continued COVID impact on the Education and Hospitality sectors, the lower end of that range is more likely.

Superloop share price snapshot

Despite today’s losses, Superloop shareholders are still sitting on a 16% gain over the past 12 months. That compares to a 0.3% loss on the All Ordinaries Index (ASX: XAO).

So far in 2021, the Superloop share price is down 9%.

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Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of SUPERLOOP FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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