Swoop Holdings Limited (ASX: SWP) Secures $30M Customer Agreement
New Customer Agreement
Swoop Holdings Limited (ASX: SWP) has entered a three-year agreement with Flip TV Pty Ltd, marking a significant milestone in its operations. The arrangement involves migrating Flip’s growing broadband customer accounts, currently numbering 26,000, to Swoop’s network. This agreement is projected to generate over $10 million in annual revenue starting January 2025, with potential for increases as Flip’s customer base expands.
Executive Insights
Swoop CEO Alex West expressed enthusiasm for partnering with Flip, highlighting their impressive growth in the consumer broadband sector. “We are very excited about our partnership with Flip, they have demonstrated a fantastic ability to grow in the consumer broadband space, along with their complementary services. And Swoop are dedicated to assisting Flip in its growth ambitions by providing network scalability and the right commercial model…” said West. He also noted that although the services offered are a lower-margin wholesale product, the contract remains materially profitable and cash flow positive.
Flip TV’s Steve Kotzo echoed this sentiment, stating, “By partnering with Swoop, we can excel in all three areas, enabling us to focus on achieving our ambitious growth targets.” Kotzo praised the hard work of both teams in preparing for the transition during a challenging period.
Contract Details
The agreement includes standard warranties, indemnities, and clauses limiting liability. It also features customary termination provisions in the event of material breaches or insolvency.
Swoop Holdings Limited has signed a $30M agreement with Flip TV for wholesale internet services, enhancing future revenue prospects.
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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