NBN Co has lifted its total revenue by 10 per cent and narrowed its losses in an impressive full-year report card.
NBN posted total revenue of $5.1 billion, and EBITDA of $3.1 billion for FY22.
It posted a statutory loss of $1.5 billion, down from the $3.8 billion loss for the previous financial year, and has repaid a further $6.8 billion of the initial $19.5 billion Commonwealth loan. This loan now sits at $6.4 billion.
“We have accelerated our private debt raising and capital recycling program over the last three years to take advantage of record low interest rates, locking in a series of well-priced Medium-Term Notes. This provides us with a good hedge should interest rates continue to rise in the future,” NBN Co Stephen Rue says in a statement.
“It is, however, important that we continue to prudently manage our capital and operating costs and generate consistent, predictable revenue so we can continue to deliver on customer, industry and government expectations as we work to lift the digital capability of Australia.”
These is a possibility that the NBN may be forgiven the remaining $6.4 billion, after last month’s announcement the government will treat the National Broadband Network as a public utility rather than a moneymaking scheme, under a major new broadband policy.
“At the core of the Albanese government’s priorities are the long-term interests of Australian consumers. This means affordable prices and a quality, resilient network,” Communications Minister Michelle Rowland said.
Rowland said NBN’s initial plan to raise the costs of NBN through to 2040, was based on a view to privatisation, which is no longer the case.
“The government has stated that it will retain NBN Co in public ownership for the foreseeable future, expand full-fibre access to more homes and businesses and to ensure the NBN delivers for consumers and facilitates productivity,” Rowland said.
“We understand that any variation to the [NBN’s plan] will need to have some regard to the past. This could mean historical concepts such as the Initial Cost Recovery Account (ICRA) could be changed or reconsidered to facilitate a focus on a forward-looking regulatory model for the business.”
