- Australian telco company Aussie Broadband (ABB) sees a 7 per cent quarter-on-quarter increase in total broadband services to 584,793 for the June quarter
- While the company says it’s pleased with the result, it falls below the company’s previous guidance when excluding the Over The Wire acquisition in March
- Aussie Broadband expects to generate an EBITDA at the top end of its existing guidance of between $38 and $39 million, with full-year results to be released by the end of August
- Meanwhile, ABB says it improved call centre issues over the June quarter and reduced wait times by two thirds
- Aussie Broadband shares are down 17.5 per cent to $3 at 3:27 pm AEST
Shares in Australian telco company Aussie Broadband (ABB) have tumbled following the release of the company’s June quarterly report.
This comes even as the company’s total broadband services grew to 584,793 in the June quarter — a 7 per cent increase on the March quarter and a 46 per cent increase year-on-year (YoY).
The company said it’s pleased with the result “given the third quarter challenges we faced and have been very focused on addressing over the past three months”.
The Over The Wire (OTW) business, which was acquired in March, contributed 5929 to the total broadband services in the fourth quarter.
However, despite the overall growth, Aussie Broadband’s total broadband services still fell just short of its previous guidance.
The internet and data provider expected total broadband services to be between 580,000 to 585,000 for the quarter but, excluding OTW, the company fell slightly short. Aussie Broadband attributed this to the reduced level of marketing investment through the Federal election period.
Residential broadband services grew a slight 4 per cent compared to the March quarter and 28 per cent YoY. While this service division saw the smallest quarterly growth, it accounted for 464,979 of total broadband services, making it the main contributor to the quarterly result.
Nevertheless, based on unaudited results, Aussie Broadband (including Over the Wire since acquisition) said it expected to generate earnings before interest, tax, depreciation and amortisation at the top end of its existing guidance range of $38 million to $39 million.
Aussie Broadband also made a point to address call centre wait time issues in the March quarter. Over the June quarter and into July, ABB hired additional call centre staff and agent-to-customer ratios returned to previous levels. As a result, the company reduced call centre wait times by two-thirds.
ABB’s Fibre project is now 90 per cent complete and is expected to generate $13.5 million in year-on-year savings, as well as improve margins by expanding its fibre network.
Aussie Broadband is also continuing the integration process of the OTW business, with a new operating structure commencing as part of the company’s goal to become Australia’s fourth-largest provider of communications and technology solutions.
The company will announce its FY22 results on August 29.
Aussie Broadband shares were down 17.5 per cent to $3 at 3:27 pm AEST.