Here’s why the Swoop (ASX:SWP) share price is soaring 7% today

Today’s a rocketing day on the ASX for Swoop.

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The Swoop Holdings Ltd (ASX: SWP) share price is rocketing after the company announced a new $5 million deal.

Swoop has won the contract the provide National Broadband Network (NBN) services to Western Australia.

At the time of writing, the Swoop share price is trading at $1.49, 7.58% higher than its previous closing price.

Swoop is a newly listed telco. It provides ultra-reliable, high-throughput, flexible fixed internet and telecommunication services.

Let’s take a closer look at today’s news from Swoop.

Swoop’s new contract

The Swoop share price is gaining today after it released news of a new 5-year NBN contract.

Swoop’s wholly-owned subsidiary NodeOne, alongside secure network provider Orro Group, has signed a contract worth more than $5 million.

Together, the two companies will provide NBN enterprise ethernet to users across Western Australia.

They will use NodeOne’s direct connectivity to connect more than 150 locations to all 14 of Western Australia’s NBN points of interconnects (POIs).

Swoop says the contract positions it as a ‘challenger telco’ that can offer multi-site solutions, competitive rates, and local support.

The company expects the contracted work to be finished by the end of the first half of the 2022 financial year.

Commentary from management

Swoop’s CEO Alex West commented on the news driving the company’s share price today. He said:

The team has been working closely with NBN and Orro Group for some time on this deal and it is an amazing achievement for all parties involved.

NodeOne are the only WA-based retail service provider with direct connectivity to all the NBN POIs, and when you combine this with the great relationship we have with NBN and Orro Group, our local support and account management teams, it really gave us a unique offering.

Swoop share price snapshot

The Swoop share price has gained 19.2% since its initial public offering (IPO) in late May.

The company has a market capitalisation of around $236 million, with approximately 170 million shares outstanding.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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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