Aussie Broadband announces first results since IPO, beats prospectus forecast

Aussie Broadband Limited (ASX:ABB) has just announced its results for H1 FY21 period which ended on 31 December 2020.

The telco company reported revenues of $157.4 million, an increase of 89 per cent over the previous corresponding period (pcp). This figure is in line with the prospectus forecasts.

EBITDA came in at $7.3 million (including IPO expenses), an increase of 87 per cent on pcp and well ahead of prospectus forecast.

According to its prospectus prior to listing in October 2020, Aussie Broadband was targetting EBITDA of $12.3 million for the full year up to 30 June 2021. Based on today’s results, the company is well ahead of that forecast.

Aussie Broadband said it had gained significant broadband connections over the last six months, providing 342,634 connections – an increase of 31 per cent from June 2020.

It has also made significant inroads, signing a mobile virtual network operator (MVNO) agreement with Optus Wholesale, as well as completing a 79km programme of dark fibre construction connecting six data centres and seven NBN POIs (Points of Interconnect).

Aussie Broadband managing directior, Phillip Britt, sets his eyes firmly on the long term.

“We have continued to build out critical infrastructure for our network that will shape the quality of our service for years to come, and invested heavily in our Australian team and technology capability, including internal software enhancements and network automation.”

What’s next

The board has provided an updated guidance for the full year FY2021.

The company is forecasting revenues of between $345-$355 million for the full year vs prospectus forecast of $338 million.

Normalised EBITDA is expected to be between $13-$15 million vs prospectus forecast of $12.3 million.

The Aussie Broadband IPO

Aussie Broadband decided to list its shares on the ASX in 2020, after trading as a private company since 2008.

On 16 October 2020, the shares made their debut on the ASX – with an oversubscribed $40 million IPO floated at $1, which closed higher by 91 per cent at the time. The share price is currently trading at $2.64, up by 3.6 per cent.

ABB share price today:

In its prospectus, the company’s pitch to investors revolved around its $67 million dark fibre network rollout, which it said would reduce its reliance on third-party infrastructure. The project is on track to be completed by 2022.