Entertainment and tech infrastructure company Swift (ASX: SW1) is making it big in Western Australia, locking in deals worth $2.06 million. It has been awarded projects across multiple sites for market-leading companies, like OTOC, AngloGold Ashanti, Mineral Resources and Roy Hill, due in 2023.
As per the agreements, the Company’s engineering and delivery teams will design and install various network and Wi-Fi infrastructure solutions, as per individual site needs. The teams will leverage their extensive knowledge and expertise within the Mining and Resources sector to ensure each network and WiFi infrastructure solution is reliable, stable, scalable and future-proofed—besides improving the on-site living experience of course.
Swift CEO Brian Mangano says, “These new contracts are significant not only in the revenue they deliver to Swift’s P&L in H2-FY23 and H1-FY24, but they also represent strategically important new and expanding relationships within Swift’s growing customer base”.
Swift provides entertainment options—free-to-air and paid TV shows, telecommunication, video on demand and more—for people who work in remote environments, away from internet connections and such. It helps people, like fly-in-fly-out (FIFO) employees who work in mining, construction or companies with setups in far-off areas. The new contracts, all located in Western Australia, represent the need for some entertainment and communications networks in such regions.
AngloGold Ashanti is a global mining company, specialising in copper, gold and silver operations, and Mineral Resources is another mining company known for commodities like iron ore and lithium. OTOC helps companies and organisations build end-to-end infrastructure, seeing them through designing and commissioning. Finally, Roy Hills is an iron ore mining company with operations in rail and port operations, too.
Last year, Swift had received a $3.4 million-worth contract from Mineral Resources and another one—value unknown—with Roy Hills. These new agreements represent the continuation of a relationship between these companies.
In H1 FY23, Swift pushed the rollout of its Swift Access product—an entertainment portal, which has been installed in over 5,000 rooms overall and about 3000 rooms at Roy Hill, a significant achievement in Swift’s product roll out plan.
During the period Swift secured a $7.7 million finance facility with its existing lender, Pure Asset Management, with expiry being extended to 30 September 2025. It also increased its inventory levels to $1.32 million to keep itself protected from another supply chain fiasco.
In the first half, the Company’s revenue increased to $9.6 million from $8.7 million in H1 FY21, and its loss improved by over 60% to $944k from over $2 million. However, its cash position, falling to $1.6 million from about $4 million as of June 2022, made it participate in last year’s infamous layoffs, getting rid of some business roles entirely. It also cut executives’ salaries by 10%.
Plus, it incurred additional costs in developing new applications to meet its growth strategy and market demand. Swift expects to recover these costs by selling these applications.
These new agreements allow shareholders to breathe easy for now, as Swift’s share price rose by over 11% following the announcement.
Alinda is a Business Reporter for The Sentiment
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