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- Aussie Broadband (ABB) reports growth across most of its key performance indicators in its unaudited quarterly and half year trading update
- During the quarter, revenue climbed 11 per cent from the previous quarter, while for the half-year it increased 19 per cent to $36.7 million
- Total broadband connections also grew by 11 per cent, which was assisted by white label connection migrations in what is a seasonally lower quarter due to Christmas
- The company provided full year EBITDA guidance of between $27 million and $30 million
- Shares are trading 0.36 per cent higher today at $4.24 each
Aussie Broadband (ABB) has reported growth across most of its key performance indicators in its unaudited quarterly and half-year trading update.
During the quarter, revenue climbed 11 per cent from the previous quarter, while for the half-year it increased 19 per cent to $36.7 million.
Total broadband connections similarly increased by 11 per cent, which was assisted by white label connection migrations in what is a seasonally lower quarter due to Christmas.
ABB expects its NBN market share, excluding satellite, is expected to be 5.66 per cent at 31 December 2021, up from 5.17 per cent at 30 September 2021.
Total CVC expenditure was $1.8 million, a decrease of 45 per cent from the previous quarter due to the end of lockdowns.
The company grew mobile services to 32,207, representing a 9 per cent increase from the previous period.
Due to restricted availability of mobile handset options, some loss of services due to coverage following the switch to the Optus network, and delays in offering the opportunity for consumers to sign up for mobile services online, mobile nett additions were 31 per cent lower than the previous quarter.
Aussie Broadband continued construction on its Aussie Fibre project, completing 63 sites by the end of the year. It expects another 34 sites will be completed in the current quarter with the final 10 sites to be completed in the last quarter of the financial year.
Based on preliminary, unaudited management accounts the company expects half-year EBITDA to be about $9.1 million excluding transaction costs associated with the Over the Wire acquisition.
The company provided full-year EBITDA guidance of between $27 million and $30 million.
Managing Director Phillip Britt said the company will continue to grow in the next half.
“Whilst first half EBITDA has been impacted by increased promotional costs, and CVC expense due to lockdowns, we expect to see the benefits of operating leverage in 2H FY22 with employee, marketing and administration expenses expected to be lower as a percentage of revenue,” he said.
“The second half will also benefit from the organic connection growth achieved in the first half, additional white label migrations, and operating leverage to produce a full year EBITDA in the range $27m to $30m.
“This validates our strategy of continuing to invest in connection growth at the expense of short-term EBITDA gains.” Mr Britt said.
Shares were trading 0.436per cent higher today at $4.24 each at 11.03 am AEDT.
