Swoop’s Revenue Surges but Underlying Earnings Slide Into Loss

An update from Swoop Holdings Limited ( (AU:SWP) ) is now available.

Swoop Holdings reported a 75% rise in revenue from ordinary activities to $97.4 million for the half-year ended 31 December 2023, driven by growth across its operating activities, with gross margin increasing 18% to $49.7 million. However, the group swung from a prior-period profit to a total loss attributable to owners of $13.3 million, as underlying EBITDA fell 43% to $9.8 million and underlying net loss before tax widened to $16.9 million, highlighting rising operating expenses and a more challenging profitability profile despite strong top-line expansion.

Earnings per share from continuing operations declined into negative territory, with basic EPS at minus 3.69 cents compared with minus 4.29 cents a year earlier, and total basic EPS attributable to shareholders at minus 3.69 cents versus 1.36 cents previously. Management’s presentation of non-statutory measures such as gross margin and underlying EBITDA, which incorporate both continuing and discontinued operations and exclude non-cash and one-off items, underscores the pressure on underlying earnings and signals that investors must weigh rapid revenue growth against deteriorating bottom-line performance.

The most recent analyst rating on (AU:SWP) stock is a Hold with a A$0.14 price target. To see the full list of analyst forecasts on Swoop Holdings Limited stock, see the AU:SWP Stock Forecast page.

More about Swoop Holdings Limited

Swoop Holdings Limited operates in the telecommunications and internet services sector, generating revenue from providing connectivity and related network services. The company reports results for both continuing and discontinued operations, and tracks non-statutory metrics such as gross margin and underlying EBITDA to reflect its operating performance across its service portfolio.

Average Trading Volume: 79,562

Technical Sentiment Signal: Hold

Current Market Cap: A$46.66M

For a thorough assessment of SWP stock, go to TipRanks’ Stock Analysis page.