Swoop have looked they were approaching the promised land of cash flow positivity a few times in recent years, and each time they have backed away while doing something interesting instead. There's no free cash flow graph in this report as there was six months ago, which is telling. They continue to make small acquisitions and start projects with apparently little interest from analysts, having disappointed the hell out of early investors.
@Bear77 and @Invmum had a great discussion about them here a few years ago which is good background.
They are a telecom with a range of residential, business and wholesale offerings including:
>some fixed wireless and fibre optic infrastructure mostly regional
>mobile phone and NBN offerings through their own brand as well as Moose mobile
>IP telephony services
I should make clear I am very much an amateur and am learning by doing here, which is why I don't say much about financials and I can miss things.
Over the past few years the thing that looked good in any report seems to be influenced by whatever they last bought. It's too early to see which areas are going to grow convincingly. But I can't help wondering if they should eventually have a good harvest given the experience of their team.
Interesting things in 2024:
>While revenue grew by 14%, business customer revenue grew by 30%.
> In a contract with a US NASDAQ listed company, they will install 300km of their own fibre optic cable around Melbourne including part of the CBD, over the next 2 years. Initial revenue is said to be $34m
I listened to the results call, and assumed that professional analysts would ask some probing questions at the end. However, not a single question was asked, so I don't understand the full significance of the Melbourne fibre project. I guess I'll just have to work up the courage to ask my own questions!
The low key call also makes me think that they understand that no one will pay them much attention until their bottom line metrics start to look good, and they seem to want to prioritise getting things set up.
Discl: Hold IRL.
