Aussie Broadband Beats FY21 Forecast
Aussie Broadband has exceeded expectations for its first financial results since going public, capitalizing on the environment created by the COVID-19 pandemic.
After being listed on the Australian Securities Exchange (ASX) in October, the telecommunications provider beat the figures shown in its prospectus for income and pre-tax profits for the 12 months ending June 30.
In particular, the NBn specialist saw its revenue increase 84% year-on-year to $ 350 million, 3.6% ahead of its prospectus forecast.
Its earnings before interest, taxes, depreciation, and amortization rose 433 percent for the year to $ 19.1 million, 55 percent ahead of its prospectus forecast.
The increase in EBITDA, according to the documents listed on the ASX, was due to customer growth in the commercial and residential segments, an increase in the average revenue per user (ARPU), careful management of HVACs, as well as the extension of COVID-19 virtual connectivity by NBN. Circuit Credits (CVC) and promotional discounts.
This comes at the high end of Aussie Broadband’s FY21 forecast range, as it predicted in February that EBITDA would be in the $ 17 million to $ 20 million range.
Aussie Broadband also cut its after-tax net loss by almost two-thirds, from a loss of $ 12.3 million to $ 4.5 million in the dark.
“We have staff spread across Australia who, like our clients, have all experienced different forms and durations of foreclosures throughout the year,” said Managing Director Phillip Britt.
“The pandemic has highlighted the importance of a reliable Internet in our daily lives. Despite the challenges, our team continued to deliver excellent network performance and excellent customer service to our customers, which are critical factors in our growth.
“We are in business to change the telecommunications game, and our people do it every day with our high quality network, smart technology and our concern to be kind to our customers. ”
In addition, the provider has expanded its services by more than half, with a 53% increase in the total broadband services offered by the company to 400,848.
Mobile services more than doubled 102% to 25,606, driven by a mobile virtual network operator (MVNO) agreement signed with Optus, which took place in the first half of the year.
Aussie Broadband’s overall growth is unlikely to stop there, as the provider said it had record broadband and mobile phone sales in July and anticipated another record for August.
It also started taking orders through its white label platform in July, saying the daily order volume exceeded initial forecasts and expectations. In addition, the migration of 32,000 white-label broadband services to its own network will begin in the second quarter of fiscal 22.
Meanwhile, CVC use is proving difficult due to COVID-19 lockdowns. NBN’s planned HVAC lockout relief for August and September will help mitigate the increase in HVAC spending somewhat.
However, the volatile environment and the resulting impact on HVAC spending caused Aussie Broadband to forgo providing a forecast for FY22.
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