Swoop (ASX:SWP) share price rockets 20% on revenue growth

Swoop shares are up a whopping 20% today as investors buy in to the telco company.

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The Swoop Holdings Ltd (ASX: SWP) share price is soaring during mid-afternoon trade. This comes after the telecommunications company released its FY21 full-year results before market open today.

At the time of writing, Swoop shares are swapping hands for $1.54 apiece, up 19.84%.

Swoop records strong increases across key metrics

The Swoop share price is flying after the telecommunication services provider delivered its results for the 12 months ending 30 June 2021. Here are some of the key financial updates:

What happened in FY21 for Swoop?

Swoop completed the acquisition of three materially accretive regional fixed wireless operators in June and July. They included Beam Internet, Speedweb, and Community Communications.

The company advised that its infrastructure now spanned more than 390 towers, up from 259 towers in FY20. Furthermore, Swoop is now one of the country's largest fixed wireless network providers.

Services In Operation (SIO) also registered strong momentum with 30,723 subscribers, up 24% on the prior corresponding period. This comprised a revenue mix of residential (48%), followed by wholesale (42%), and business (10%).

What did management say?

Swoop CEO Alex West welcomed the results, saying:

We had a fantastic year which was capped off by our successful listing on the ASX. I am thrilled with the growth we have achieved and the opportunities that exist for further acquisitions.

Along with the board, the executive team and I are pumped to be creating the next national Australian telco with the business on track for an equally successful FY22.

What's the outlook for Swoop in FY22?

Looking ahead, Swoop provided guidance for an equally robust result for FY22. The business is forecasting revenue greater than $40 million, and EBTIDA of $10 million. This represents a growth of 33% and 106%, respectively.

Swoop noted that achieving FY22's guidance would come from predominantly recurring revenue with some contribution from projects and regional grants.

Swoop share price snapshot

Since the company's listing in May 2021, the Swoop share price has accelerated by more than 300%.

Based on the current share price, the company has a market capitalisation of around $176.2 million.

Motley Fool contributor Aaron Teboneras 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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