Aussie Broadband (ABB) H2 2024 earnings summary

Executive summary

• Achieved revenue of $999.7 million for FY24, a 27% year-over-year increase, with gross margin improving to 36.1%.

• Underlying EBITDA rose 34.5% to $120.5 million, reaching the top end of guidance.

• Declared inaugural fully franked dividend of 4 cents per share, reflecting 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 1,721km, supporting margin improvement and future growth.

Financial highlights

• Revenue grew 27% year-over-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 up 54.1% to $128.2 million (normalized).

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

• Cash and cash equivalents at $213 million, net debt at $138 million, and 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 realizing upgraded Symbio synergies of $8–$12 million by FY26.

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

• Continued investment in digital platforms, automation, AI, and customer experience, leveraging multi-brand strategy.