- Aussie Broadband’s (ABB) shares slip on the release of the company’s quarterly trading update as the company downgrades its EBITDA guidance
- EBITDA is expected to land in the lower end of its original guidance, between $27 and $28 million
- However, the company managed to grow across many other key metrics, with broadband services climbing 11 per cent from the previous quarter
- Notably, wholesale and white label climbed 91 per cent, with the company expecting further growth in this sector
- Shares are down 23.6 per cent to trade at $4.25 each
Aussie Broadband’s (ABB) shares have slipped on the release of the company’s quarterly trading update as the company downgrades its EBITDA guidance.
In February, the company announced it expected EBITDA between $27 and $30 million. However, in its most recent announcement, the guidance was updated to land in the lower end, between $27 and $28 million.
Similarly, connections guidance was adjusted to the lower end and is expected between 580,000 and 585,000.
Despite the movement, ABB managed to improve across most of its key metrics.
The third quarter saw the company grow broadband services by 11 per cent from the previous quarter while increasing the share of NBN services to 6.19 per cent.
Notably, wholesale and white label climbed 91 per cent, with the company expecting further growth in this sector.
Following its acquisition of Over the Wire, ABB said it intends to explore wholesale broadband opportunities with Over the Wire’s partners and wholesale customers in the voice and data segments.
“The company has delivered consistent broadband services growth over the last three quarters, and this financial year is on track to be our largest ever for net broadband service additions,” Managing Director Phillip Britt said.
“This growth is extremely pleasing in a market which is no longer growing and is reliant on customers choosing Aussie and switching from other providers to win market share.”
Shares were down 23.6 to $4.25 each at 12:46 pm AEST.