Aussie Broadband (ABB) H2 2024 earnings summary

Executive summary

• Achieved 27% year-on-year revenue growth to $999.7 million, with gross margin improving to 36.1% and EBITDA up 34.5% to $120.5 million, reaching the top end of guidance.

• Declared inaugural fully franked dividend of 4 cents per share, reflecting a strong balance sheet and cash flow.

• Continued diversification across residential, business, enterprise & government, wholesale, and Symbio segments, with Symbio contributing $12 million EBITDA in four months and upgraded synergy targets.

• Expanded fibre infrastructure to 1,721 km and over 500 connected buildings, supporting margin improvement and future growth.

• Launched Buddy Telco, a digital-first sub-brand, with strong early customer satisfaction and a target of 100,000 subscribers in 3 years.

Financial highlights

• Revenue grew 27% year-on-year to $999.7 million; gross margin improved by 0.7 percentage points to 36.1%.

• Underlying EBITDA rose 34.5% to $120.5 million; operating cash flow before interest and tax was $128.2 million, up 54.1%.

• Net profit after tax increased 21.7% to $26.4 million.

• Net debt position at $138 million; cash and cash equivalents at $213.5 million; leverage ratio reduced to 1.1x.

• CapEx for FY24 was $47.4 million, with FY25 guidance of $55–$60 million.

Outlook and guidance

• FY25 underlying EBITDA guidance set at $135–$145 million; after Buddy Telco investment, guidance is $125–$135 million.

• CapEx guidance for FY25 is $55–$60 million, expected to be $8 million lower than pro forma FY24.

• Focus on organic growth, margin sustainability, and realising upgraded Symbio synergies of $8–$12 million by FY26.

• Positive momentum in all segments, with over 13,000 net broadband additions in the first 8 weeks of FY25.

• Earnings growth of 13% to 21% targeted for FY25.