Aussie Broadband (ABB) H1 2025 earnings summary

Executive summary

• Revenue for 1H FY25 rose 32% year-over-year to AUD 588.5 million, driven by Symbio acquisition and organic growth, with strong margin and EBITDA gains across all core segments.

• Symbio acquisition diversified revenue, reduced residential share, and is on track for 30% YoY earnings growth and AUD 38 million EBITDA.

• Broadband connections grew 6.4% to 728,000, with NBN market share at 7.8% and 43,652 new broadband connections added.

• Leadership transition: Phillip Britt retiring as Managing Director, succeeded by Brian Maher; business moving to a divisional structure for FY26.

• Fully franked interim dividend of AUD 0.016 per share and special dividend of AUD 0.024 per share declared.

Financial highlights

• Revenue reached AUD 588.5 million, up 6.8% pro forma year-over-year and 32% on a statutory basis; gross margin grew 7.5% to AUD 217.6 million.

• Underlying EBITDA up 8.9% to AUD 65.8 million; NPATA up 35.2% to AUD 21.5 million; profit after tax more than doubled to AUD 12.2 million.

• Operating cash flow before interest and tax declined 25.8% to AUD 49 million, with cash conversion at 74.9% due to working capital timing and higher tax payments.

• Net leverage ratio at 0.72x, well below target range, after AUD 120 million of borrowings repaid; net borrowings at AUD 101.1 million.

• Cash and cash equivalents at AUD 135.4 million, down 17% from June 2024.

Outlook and guidance

• Upgraded FY25 underlying EBITDA guidance to AUD 133–143 million, reflecting strong trading performance and excluding significant non-recurring costs.

• CapEx guidance increased by AUD 20 million to AUD 75–80 million, reflecting ongoing investment in fibre, growth, and infrastructure.

• 2H FY25 focus on organic growth, with 14,129 net broadband connections added quarter-to-date.

• Strategy to 2028 focuses on revenue diversification, expanding fibre footprint, digital tools, system simplification, and security.