Superloop anticipates a potential gross margin impact of up to $4 million on an annualised basis should AGL fully reduce its usage under their wholesale agreement. This estimation follows AGL’s recent agreement with Aussie Broadband, where Aussie Broadband will acquire AGL’s telecommunications business through the issuance of $115 million in new shares. Superloop provides network and backhaul transit services. The company has an existing wholesale agreement with Southern Phone Company, an AGL subsidiary, set to expire in June 2029.
According to a statement by Superloop, the migration of subscribers from AGL’s network is expected to occur in the first half of FY27. The company has assessed the potential financial implications of this migration. Should AGL completely cease its usage under the wholesale agreement upon migration completion, Superloop foresees the previously mentioned impact to its gross margins.
Superloop provides essential network solutions, connecting businesses and enabling seamless digital experiences. They achieve this through their fibre network and fixed wireless infrastructure. The estimated impact is based on AGL’s full reduction of usage, marking a notable development for Superloop’s financial outlook.
Following the announcement, shares in Superloop experienced a downturn on the Australian Securities Exchange (ASX). Superloop’s shares were down 3.66 per cent, reflecting investor reaction to the potential margin impact. The company will continue to monitor the situation and provide updates as necessary.
