Superloop Announced INDIGO Subsea Cable System Ready to be Deployed

Superloop Limited (ASX: SLC) is a company from the telecommunication services sector, that provides connectivity of services designing, construction and operations of networks across the region of APAC.

 

On 30 May 2019, SLC notified the market that INDIGO subsea cable system could now be deployed by consortium members after the on-schedule completion of the INDIGO West (4,600km Singapore to Perth) and INDIGO Central (4,600km Perth to Sydney cables).

SLC’s subsidiary SubPartners features as a member of the consortium mentioned above. The other members of the consortium are AARNet, Google, Indosat Ooredoo, Singtel and Telstra.

Previously, on 6 April 2017, the above-mentioned consortium members had declared to the market that they have together signed an agreement, with ASN (Alcatel Submarine Networks) to create new international subsea cable system for linking Singapore, Indonesia and Australian region. On the same date, the company announced the acquisition of the SubPartners Pty Ltd for its strategic assets along with international submarine cable capacity as a member of the INDIGO consortium for the construction of INDIGO West cable and the INDIGO Central cable.

On 30 May 2019, SLC further mentioned that every consortium member can apply the new cable system individually for upgrading their networks since the INDIGO subsea cable system features a new spectrum-sharing technology.

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Also, the INDIGO cable system will help in consolidating the connectivity between Australia, along with the flourishing markets in the Southeast Asian region. It would also, give lesser latency and services which are highly reliable in terms of communication.  With the application of the recent coherent optical technology, the cable could extend its support up to thirty-six terabits per second. This speed is corresponding to streaming millions of movies a second at the same time.

The cable system got concluded on schedule, as the rising economy of Asia is pushed ahead by the digital connectivity. By 2025, as per TeleGeography, the bandwidth demand between Asia and Australia will reach 75Tbps. The INDIGO subsea cable system will also aid in meeting the rapidly increasing demand for direct inter-connection between Singapore and the Australian region.

As announced by the company, on 24 December 2018, INDIGO Central had achieved Final Splice on Friday, 21 December 2018. Thus, creating the first submarine cable system which links Singapore to Sydney region. “Final splice” is where subsea cable installation gets completed which creates a whole optical path which starts from landing station to the end of it.

In the 1H FY2019, the company reported an increase in its revenue by 18% to $60,325 as compared to its previous corresponding period. The company incurred a significant loss of $8,731. The company generated revenue through three operating segments that are as follows:

  • Connectivity, which includes the revenue generated from the metro fibre networks of the Group in Singapore, Hong Kong, Australia. It also includes the fixed wireless network in Australian region as well as incomes that were related to the INDIGO subsea cable network’s progress.
  • Broadband, under which the company generated income from the Superloop WiFi for resorts & student accommodation. It also included revenue from the Superloop Home Broadband.
  • Services, under which the company generated income through Cloud & managed services as well as security products.

The balance sheet of the company, for the 1H FY2019 period, had witnessed a rise in the net asset of the company, as a result of a significant fall in the total liabilities. The total shareholders’ equity for the period was $379.640 million. During the period, the cash inflow from the operating activities declined from $6.267 million in 1H FY2018 to $1.957 million in 1H FY2019. The cash inflow through the financing activities was $25.311 million.

By the end of 1H FY2019 on 31 December 2018, the company had net cash and cash equivalent worth $7.954 million.

The shares of the company were trading at A$1.735 (as on 31 May 2019, 01:00 PM AEST), down by 1.977%.


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