Superloop shares experienced a significant surge, climbing nearly 15 per cent on Wednesday following its acquisition of Victoria’s Lightning Broadband for $165 million. The acquisition aims to expand Superloop’s fibre networks and has prompted an upgrade to its underlying EBITDA guidance. The deal will be funded through a combination of cash and debt.
Superloop’s strategic move to acquire Lightning Broadband aligns with its focus on growing its “smart communities” business. Superloop provides internet services to student housing, hospitals, and hotels. Lightning Broadband, currently owned by Lynham Networks, operates a wholesale broadband network and delivers retail services directly to consumers.
Citi analyst William Park highlighted Superloop’s strong interim results, noting a $5 million interim profit, a substantial improvement from the $7.8 million loss reported in the previous year. Park noted the company’s positive performance during a period of widespread promotional activities and added, “With strong earnings beat across the board, it is not surprising that Superloop has upgraded its earnings guidance.”
The positive market reaction reflects investor confidence in Superloop’s strategic direction and its ability to capitalize on growth opportunities in the telecommunications sector. As of the latest trading update, shares in Superloop were up 14.5 per cent, demonstrating a strong market response to the acquisition news and upgraded financial outlook.
