It's been a good year for Superloop Ltd (ASX: SLC) shareholders.
The telco's share price has almost doubled over the past 12 months.
With Superloop shares now changing hands for around $2.98 each, the company's market cap currently exceeds $1.5 billion.
And Superloop looks set to continue to deliver solid returns for shareholders.
What is Superloop?
Superloop, a fibre infrastructure provider founded in 2014, designs, constructs, and operates telco networks.
The company's founder, Bevan Slattery, identified a gap in the telco market when he noticed that no single provider offered a service that covered Singapore, Hong Kong, and Australia.
After listing on the ASX in 2015, the company focused on building and rolling out infrastructure in its key target markets.
It built networks connecting Singapore, Hong Kong, and Australia.
But the company has since sold off numerous Asian assets, restructured its leadership, and is now focusing on the Australian market.
The shift in strategy appears to be paying off.
Big customer wins
In early 2024, Superloop signed a strategic six-year contract to provide internet services for Origin Energy Ltd (ASX: ORG).
That deal, worth $19 million, followed the signing of a five-year contract with another major Australian energy provider, AGL Energy Ltd (ASX: AGL).
Superloop now services more than 664,000 customers, with more than 209,000 net new customers added during the first half of FY25.
The company also stated it had enjoyed substantial market share gains, increasing its NBN market share by 2.3% to 6.3%.
As such, the company saw revenue grow by about 30% over the half to come in at $258.1 million.
Superloop's CEO and Managing Director, Paul Tyler, said the latest results demonstrate the momentum the business is building.
These results demonstrate the effectiveness of our low-cost operating model and growing scale advantages which deliver operating leverage, improve unit economics and support strong earnings growth.
We remain on track to achieve our 'Double Down' strategy ambitions, with financial year guidance reaffirmed and a clear path to achieving a positive NPAT result in FY26.
Superloop also stated that during the half, it reduced its net loss after tax from $10.9 million to $7.8 million and increased its cash position by 27% to $16 million.
Is it time to buy Superloop shares?
Superloop is on its way to achieving profitability by FY26.
The company reaffirmed its FY25 guidance for underlying EBITDA in the range of $83 to $88 million, an increase of 62% on FY24.
With a solid rate of customer growth, including some high-profile logos, Superloop is rapidly encroaching on the customer bases of more established players.
In fact, broker UBS has stated that disruptors in Australia's telco space are on track to snatch a collective 35% of market share from the major players in the coming years.
With the cohort of disruptors now claiming about 20% of that market share from the likes of Telstra Group Ltd (ASX: TLS) and Optus, there remains significant growth to be realised.
As such, Superloop looks well placed to continue to deliver solid returns for shareholders.
