Company Interview / Ellerston's small cap big idea

Jack Briggs from Ellerston Capital makes a positive case for Superloop (ASX:SLC), highlighting its robust competitive differentiation, particularly in maintaining a low-cost operating base and a growing brand presence. Briggs points to Superloop’s growth in residential NBN subscribers and expects that the company’s organic expansion will surpass market forecasts in both subscribers and profitability. The wholesale agreement with Origin Energy (ASX: ORG) is singled out as a significant achievement, reflecting Superloop’s ability to secure high-value, innovative partnerships and efficiently leverage its technology and network assets.

Superloop CEO Paul Tyler maintains that much of Superloop’s long-term value lies in its B2B operations, not just its visible and rapidly growing consumer-facing business. The company’s strategy has focused on doubling business size in three years, primarily through organic growth, while remaining selective on acquisitions due to limited value opportunities. He sees a strong defensive moat in the business due to operational simplicity, automation, and network asset ownership, suggesting that these factors will allow Superloop to offer value pricing without sacrificing service quality.

Looking ahead, Briggs anticipates further market share gains by challenger brands like Superloop from traditional telcos such as TPG and Telstra. He believes Superloop’s entry into projects such as the Bradfield smart city initiative highlights its capacity for innovative, long-term revenue streams, positioning the company for sustained growth.

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