Swoop Holdings Limited · ASX:SWP
Swoop — H1 FY2023 Earnings Presentation
28 slides from Swoop's earnings presentation, Feb 28, 2023
Slide 1: H1 FY23 Financial and Operational Results Investor Briefing
For personal use only H1 FY23 Financial and Operational Results Investor Briefing February 2023 1
Slide 2: Highlights
Highlights For personal use only Expanding organic Acquisitions integrating well and Strong customer brand in our growth growing better under Swoop regions and low churn High Margin Scale & Acquisition synergies Leverage the experience and capabilities Products delivered in 1H23 and future to build
Slide 3: 1H23 Highlights
1H23 Highlights For personal use only Strong revenue, underlying EBITDA1, and Cash Flow results Strong and consistent growth with +122% Revenue CAGR and increase from $0 to $7.3M EBITDA over the last 3 years, from 1HFY20 to 1HFY23. A 279% half year on half year increase in total subscriber numbers t
Slide 4: 1H23 Financial Highlights
1H23 Financial Highlights For personal use only Revenue $37.0m +122% CAGR +84% CAGR +55% YoY Gross Margin $15.7m +15% YoY Underlying EBITDA1 $7.3m +38% YoY +4073% CAGR Opex % of Revenue 23% 12% Improvement YoY Notes: 1. Underlying EBITDA excludes non-cash (share-based payment expenses) and other one
Slide 5: 1H23 Financial Highlights Cont.
1H23 Financial Highlights Cont. For personal use only Operating Cash Flow Operating Cash Flow Free Cash Flow $7.4m +155% YoY Free Cash Flow ($2.4m) 56% Improvement YoY Cash on Balance Sheet $20.9m Net Cash Surplus $1.7m 5
Slide 6: 1H23 Business Update
For personal use only 1H23 Business Update 6
Slide 7: Key Operating Metrics (Dec-22)
Key Operating Metrics (Dec-22) For personal use only 512 163 142,441 Services in No. of fixed wireless Staff across Operation masts/towers Australia (41,832 ex Mobile) 7,073 6,787 128,581 Wholesale services Business services Residential services 7
Slide 8: 1H23 SIO Growth
1H23 SIO Growth For personal use only § 142,441 Services in Operation (SIOs) in Dec-22, including 100,609 Mobile services § Ex-Mobile, SIOs increased by 4,294 (11%) to 41,832 compared to Dec 21, with all sectors growing, Residential by 2,263, Business by 1,040 and Wholesale by 991 279% 8
Slide 9: 1H23 Infrastructure Expansion
1H23 Infrastructure Expansion For personal use only § 52% of services were on-net at Dec-22 (ex Moose) § Our Fixed Wireless tower footprint grew by 27 (or 6%) to 512 towers in 1H23 On-Net vs Off-Net Over Time 6% 9
Slide 10: 1H23 Financial Results
For personal use only 1H23 Financial Results 10
Slide 11: Financial Results
Financial Results For personal use only Financial Results ($000) 1H22 1H23 Change % § Operating expenses largely flat on the increase in Revenue, COGS and EBITDA. Revenue 23,853 37,021 13,168 55% § Revenue increased by 55% over the prior COGS (10,228) (21,334) (11,106) (109%) corresponding period (p
Slide 12: Revenue Analysis
Revenue Analysis For personal use only Segment Revenue ($000) 1H22 1H23 Change Business 3,346 5,836 +74% Residential 10,681 19,757 +85% Wholesale 8,508 10,558 +24% Other 1,318 870 (34%) Total 23,853 37,021 55% § Business & Wholesale revenue continues to be driven by organic IP Transit and NBN EE gro
Slide 13: Summary Cash Flow
Summary Cash Flow For personal use only Summary Cash Flow ($000) 1H22 1H23 § Operating Cash Flow continues to improve, from +$2.9M in 1H22 to +$7.4M in 1H23 Customer and other receipts 24,582 40,487 § Majority of capex is network expansion and Payments to suppliers and employees (21,621) (32,933) su
Slide 14: Summary Balance Sheet
Summary Balance Sheet For personal use only Summary Balance Sheet ($000) June 22 Dec 22 § Strong cash position, with a remaining debt facility Cash 32,021 20,939 of $13M at 31 December, provides firepower for acquisitive and organic growth Other current assets 7,404 8,875 Trade and other payables (1
Slide 15: Acquisitions
For personal use only 15 Acquisitions
Slide 16: Acquisitions Recap
Acquisitions Recap For personal use only 8 accretive acquisitions Moose was completed in Significant pipeline in completed to date H1 FY23 discussion across Fixed Wireless, Resell, Fibre, Voice 1H FY23 Name Product Geography Segment Infrastructure Purchase Price EBITDA Date Completed EBITDA Announce
Slide 17: Acquisitions Summary
Acquisitions Summary For personal use only Name Product Geography Segment Infrastructure Purchase Price Announced EBITDA Date Completed Community FW Perth Residential 14 Towers $0.3m $0.1m1 June 2021 Communications $1.6m1 June 2021 Beam FW Regional SA Residential/SME 65 Towers $6.7m $0.5m1 July 2021
Slide 18: Acquisition Highlight – Moose Mobile
Acquisition Highlight – Moose Mobile For personal use only Moose Mobile is a Queensland based national mobile virtual network operator (MVNO) Completion November 2022 Moose now provides over 100,000 mobile services on the Optus network to customers across Australia Purchase price of $24m comprising
Slide 19: Strategy & Outlook
For personal use only 19 Strategy & Outlook
Slide 20: Growth through Infrastructure
Growth through Infrastructure For personal use only Massive opportunity to increase market share in areas already covered by Swoop infrastructure. 80% Coverage 80% Coverage 82% Legacy Technology 84% Legacy Technology Metro Perth Geelong/Metro Melbourne 0.9m Addressable Premises 1.9m Addressable Prem
Slide 21: Focus on Customer Obsession
Focus on Customer Obsession For personal use only Build on our strong brand Continued focus on Grow number of Channel Partners reducing churn now 0.8% (32% growth in 1H23) in December now 340+ active partners (down 0.3% YoY) 21
Slide 22: Focus on Integration and Automation
Focus on Integration and Automation For personal use only Continue to build Achieved 190% of targeted Further 20% annualised platforms and turn stuff off synergies from FY22 synergies identified to be in FY23 acquisitions delivered in remainder of FY23 22
Slide 23: High Margin in Demand Products
High Margin in Demand Products For personal use only 5G Fixed Wireless now rolled out in Expanding fibre based on strategic locations VIC & WA providing customer demand in existing greater speeds and higher ARPU regions 23
Slide 24: FY23 Outlook
FY23 Outlook For personal use only § Qtr on Qtr improvement in Free Cash Flow1. Targeting exit of FY23 FCF neutral to positive. § Strong half year on half year Increase in Operating Cash Flow to continue in FY23, up 155% YoY § FY23 Underlying EBITDA includes additional contribution from acquisitions
Slide 25: Summary
Summary For personal use only Expanding organic Acquisitions integrating well and Strong customer brand in our growth growing better under Swoop regions and low churn High Margin Scale & Acquisition synergies Leverage the experience and capabilities Products delivered in 1H23 and future to build the
Slide 26: Appendix
For personal use only 26 Appendix
Slide 27: Important Notice & Disclaimer
Important Notice & Disclaimer For personal use only This presentation dated 28 February 2023 has been prepared by and is being issued by the intentions of Swoop, forecasts, forward looking statements and comments about future Swoop Holdings Limited ACN 009 256 535 (ASX: SWP) (Company or Swoop) for i
Slide 28: swoop.com.au
For personal use only 28 swoop.com.au