Join our daily newsletter At The Bell to receive exclusive market insights
- Aussie Broadband (ABB) has reported an 89 per cent increase in revenue to $157.4 million for the half year ended December 31, 2020
- Aussie Broadband offers nbn subscription packages and officially listed on the ASX in October last year
- The company saw an 87 per cent increase in earnings before interest, taxes, depreciation and amortisation on the prior corresponding period
- Marketing expenses totalled $9.7 million which is 16 per cent lower than expected due to Australia Post suspending some deliveries during lockdown
- By the end of the half-year period, ABB provided 342,634 broadband connections on the nbn and OptiComm networks which is a 31 per cent increase on June 2020
- Company shares ended the day 6.69 per cent in the green at $2.71 per share
Aussie Broadband (ABB) has reported an 89 per cent increase in revenue to $157.4 million for the half year ended December 31, 2020.
It also announced $7.3 million in earnings before interest, taxes, depreciation and amortisation (EBITDA), which marks an 87 per cent increase on the prior corresponding period.
EBITDA was reportedly driven by customer growth, lower marketing expenses and NBN extending COVID-19 CVC credits and promotional rebates.
Marketing expenses totalled $9.7 million, which is 16 per cent lower than expected due to Australia Post suspending unaddressed deliveries during COVID-19 lockdowns. However, despite the lower marketing expense the company still exceeded customer connection targets.
“In a year with significant disruption to the community and many people and businesses doing it very tough, our team has managed to significantly grow our market share, maintain network performance and further improve our already great customer experience…all during the peak of a pandemic and while listing the company on the ASX,” Managing Director Phillip Britt said.
Aussie Broadband listed on the ASX in mid-October last year after raising $40 million in its initial public offering.
The telecommunications stock offers business and residential nbn subscription packages.
By the end of the half-year period, ABB provided 342,634 broadband connections on the nbn and OptiComm networks which is a 31 per cent increase on June 2020.
Broken down, the company provided 313,193 residential customers with broadband services and the remaining 29,441 were for businesses.
Significantly, ABB completed the construction of a 79-kilometre dark fibre, with 68 kilometres connecting six data centres and seven nbn points of interconnect in Victoria. The remaining 11 kilometres was in New South Wales.
Construction is still underway on a further 27 kilometres of dark fibre in New South Wales, 59 kilometres in WA and 62 kilometres in Victoria.
Aussie Broadband has also provided its updated guidance for the 2021 financial year. It expects its revenue to be between $345 million and $355 million, normalised EBITDA of between $13 million and $15 million and total broadband connections of between 417,000 and 452,000.
Company shares ended the day 6.69 per cent in the green at $2.71 per share.
