Aussie Broadband (ABB) H2 2024 earnings summary

Executive summary

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

• Declared inaugural fully franked dividend of AUD 0.04 per share, reflecting strong balance sheet and cash flow.

• Continued diversification across residential, business, enterprise & government, wholesale, and Symbio segments, with Symbio contributing $12m EBITDA in 4 months and upgraded synergy targets.

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

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

Financial highlights

• Statutory revenue up 26.9% year-on-year to $999.7m; gross margin increased by 0.7 ppt to 36.1%.

• Underlying EBITDA of $120.5m, a 34.5% increase from FY 2023; operating cash flow before interest and tax was $128.2m, up 54.1%.

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

• Net debt position at $138m, leverage ratio reduced to 1.1x.

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

Outlook and guidance

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

• CapEx guidance for FY25 is $55m–$60m, expected to be $8m lower than proforma FY24.

• Focus on expanding fibre network, leveraging multi-brand strategy, and driving operational efficiencies.

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

• Continued investment in digital platforms, automation, and customer experience.