Aussie Broadband Limited released its FY23 profits, highlighting its highest-ever revenue of $788 million, up 23.1%, and strong growth across all segments, resulting in shares jumping up almost 9% to $3.37.
Other standouts from the results were that the gross margin increased 2.1 percentage points to 35.4% and that Aussie Broadband’s earnings before interest, tax, depreciation, and amortisation (EBITDA) also went up 52.1% to $89.6 million.
Additionally, the company reported an operating cash flow growth of 147.2% to $116.7 million, as well as a net profit after tax up from $1.3 million to $21.7 million.
Out of the stellar revenue growth from all sectors, wholesale performed the best, with a increase of 61.7% over the period to $100.4 million.
As for the residential revenue, it increased to 23.3% to $511.8 million, enterprise and government grew by 8.5% to $86.4 million, whereas the business segment rose by 7.3% to $89.4 million.
Extracted from Aussie Broadband Limited FY23 Results Investor Presentation
“Our transition from being a largely residential-focused retail service provider into a multi-faceted communications and technology company underpinned by award-winning customer service is well underway. We achieved strong levels of growth across the board, achieving record revenues and EBITDA, and we are continuing to win NBN [National Broadband Network] market share ahead of other providers,” the cofounder and managing director Phillip Britt said.
For the year, Aussie Broadband also divested Zintel New Zealand and Fonebox to Maxotel Telecommunications which totalled in $5.8 million in sales, $4.8 of which has been received with the outstanding $1 million due before the end of the calendar year.
Despite a strong year, the outlook due the NBN wholesale pricing. According to the NBN SAU, it is “aggressive” discounting by competitors.
“While we will continue to find ways to compete, Aussie Broadband will not chase growth at any cost, and is focused on striking the right balance between growth and profitability,” the company said.
