Aussie Broadband (ABB) H1 2025 earnings summary

Executive summary

• Revenue for 1H FY25 grew 6.8% year-over-year to $588.5 million, driven by diversified organic growth, Symbio acquisition, and market share gains, with improved gross margin and underlying EBITDA despite competitive pressures.

• Symbio acquisition diversified revenue, reduced residential share, contributed $103.8m in revenue, and is on track for 30% YoY earnings growth and $38m EBITDA by year-end.

• Leadership transition: Phillip Britt retiring as Managing Director, succeeded by Brian Maher as Group CEO from March 2025; business moving to a divisional structure for FY26.

• Declared fully franked interim ordinary dividend of 1.6c and special dividend of 2.4c per share.

• Upgraded FY25 underlying EBITDA guidance to $133–$143 million and increased capex guidance by $20 million to $75–$80 million.

Financial highlights

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

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

• Operating cash flow before interest and tax declined 25.8% to $49.3 million, with cash conversion at 74.9% due to working capital and higher tax payments.

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

• Fully franked interim and special dividends totaling 4.0 cents per share declared.

Outlook and guidance

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

• Capex guidance increased by $20 million to $75–$80 million, reflecting ongoing investment in fibre, technology, and infrastructure.

• Focus remains on organic growth, selective acquisitions, and strategic priorities to 2028, including revenue diversification and digital tools.