Superloop Limited (ASX:SLC) has announced it’s struck a deal with Australian utility Origin Energy to provide the latter with internet for 6 years.
On the back of that announcement, Superloop has upgraded its FY24 guidance and FY25 outlook.
Underlying earnings (EBITDA) for full year FY24 results are expected now to reflect $51-53M, up from a more uncertain range of $49M-53 – an assumed improvement of $2M.
Its EBITDA metrics are assumed to improve between 60-70% in FY25.
Origin’s contract signed today with Origin is expected to produce up to $19M of annualised earnings (EBITDA) “once the current subscriber base is fully transitioned.”
Origin, in turn, snagged 9.847M shares in Superloop and 55.6M options.
Superloop gets to capture some 130,000 customers using an Origin broadband service and expects to boast a total of 560,000 heads following the deal.
“Australia’s energy retailers are investing heavily in product bundling and we are very pleased to be the partner of choice for reliability, service and value,” Superloop chief Paul Tyler said.
“In addition to Origin’s wholesale subscriber base, we are pleased to report that Superloop has continued the strong momentum in its own subscriber base, adding 21,000 subscribers in the first two months of 2024.”
The news will likely please Superloop’s shareholders.
1Y returns are up 65.3% as the company’s market cap has climbed to $515.7M.
A rather meteoric rise in late February saw Superloop’s share price jump from 70cps to where it sits today at $1.05.