Superloop Eyes New Acquisitions as Broadband Growth Accelerates

About Superloop Limited

Superloop (ASX: SLC) is a telecommunications infrastructure company that builds and operates independent fibre networks across Australia, New Zealand, and Singapore. Listed on the ASX and included in the ASX All Ordinaries index, Superloop delivers services to residential, business, and wholesale customers, including dark fibre, NBN aggregation, and secure cloud connectivity.

The company has undergone significant transformation since 2021, divesting non-core assets and investing in automation and network scalability. Under CEO Paul Tyler, the group has pivoted toward high-growth segments and cost-effective customer acquisition channels.

Growth Pipeline: Organic Momentum Fuels Inorganic Ambitions

Superloop’s organic growth in the past 12 months has been driven by its consumer broadband segment and enterprise expansion into managed services. Its customer base increased by 15%, while average revenue per user (ARPU) rose 6% across key metro areas.

Paul Tyler highlighted that the group’s ability to convert infrastructure investment into profitable market share gains now justifies selective acquisitions. The company is reportedly assessing bolt-on deals in the business fibre and wholesale segments, particularly in under-served regional corridors and fast-growing suburban zones.

Recent improvements in churn metrics and customer lifetime value (CLV) further support Superloop’s confidence in scaling operations through M&A. The company is expected to pursue targets that offer integration synergies and adjacent capabilities such as managed SD-WAN and cloud interconnectivity.

Financial Performance: Margin Expansion and Network Efficiency

Superloop’s FY25 earnings guidance indicates revenue will exceed A$360 million, with EBITDA projected to grow at 25% year-on-year. The company’s gross margin has expanded from 44% to 48% over the past year, aided by improved network utilisation and optimised customer provisioning.

Key operational drivers include the completion of self-built fibre loops in Brisbane and Perth, which are expected to reduce third-party network access costs. These investments have delivered better control over latency, reliability, and service provisioning, leading to lower support costs and improved customer satisfaction.

Superloop has also maintained a healthy cash position following its earlier divestment of Hong Kong and Singapore assets. The group’s net cash balance stands at approximately A$70 million, providing headroom for acquisition activity without overleveraging.

Industry Context: Market Consolidation and Fibre Race

Australia’s telecommunications landscape is increasingly defined by infrastructure competition and retail price compression. Superloop’s strategy of owning and operating critical last-mile fibre assets positions it favourably as wholesale rates come under pressure and NBN-related revenues plateau.

Recent industry activity—including the Vocus and Aussie Broadband merger talks—suggests that mid-tier players are racing to scale. Superloop’s infrastructure-heavy model, combined with nimble go-to-market execution, enables it to compete effectively against both larger incumbents and smaller disruptors.

The broader sector is expected to undergo continued M&A activity as companies seek growth via consolidation, technology upgrades, and customer base aggregation. Superloop is poised to benefit from this dynamic through disciplined capital deployment and strategic acquisitions aligned with its infrastructure-first vision.