Aussie Broadband (ABB) Q4 2024 TU earnings summary

Executive summary

• Preliminary FY 2024 EBITDA is expected at the top end of AUD 116–121 million guidance, including Symbio's four-month contribution, with strong broadband connection growth despite industry price rises.

• Buddy Telco, a new digital-first, value-focused brand targeting price-sensitive NBN customers, was launched to drive future growth, leveraging automation and digital-only service models.

• Symbio acquisition contributed to results, with integration synergies progressing and further details to be provided at full-year results.

Financial highlights

• FY 2024 net broadband additions totaled 84,876, with total connections (excluding Origin and Symbio) exceeding 884,000.

• Residential segment contributed 66,618 net additions, with 8,700 acquired from Uniti Group.

• At 30 June 2024, 145,402 Origin broadband services were supported, to be migrated off network in early FY25.

• FY 2025 EBITDA guidance (excluding Buddy Telco) is AUD 135–145 million, a 12–20% increase from FY 2024's top end; including Buddy Telco, guidance is AUD 125–135 million, reflecting AUD 10 million in one-off Buddy-related costs.

• CapEx guidance for FY 2025 is AUD 55–60 million, down AUD 8 million from FY 2024 due to excess capacity from Origin migration.

Outlook and guidance

• Buddy Telco is expected to be EBITDA-positive from FY 2027, with a target of 100,000 customers within three years.

• Ongoing investment in Buddy's marketing, with efficiency expected to improve as the brand scales.

• Core business EBITDA for FY 2025 projected broadly in line with FY 2024, excluding Origin's phased exit.