NBN Revenue Hits $2.8 Billion As Seven Million Target Looms
CANBERRA: NBN Co has reported a 38 percent revenue increase in Q3 to $2.8 billion, driven by strong demand spurred by the coronavirus pandemic and ensuing lockdowns.
Earnings before tax and subscriber costs increased 220 percent to $1.3 billion for the corporation’s first nine months to March 31. This places the company on track to reach its June 30 target of $1.55 billion.
Capital expenditure declined to $3.7 billion from $4.3 billion in the corresponding period, while earnings before tax fell by 12 percent, costing NBN Co $3 billion, with approximately 20 percent of new customers choosing wholesale speed tiers of 100.
Business revenue increased to more than $496 million over the nine months to March 31, up from $341 million from the previous period.
NBN Co CEO Stephen Rue said that, as a result of the high demand, the network reached its seven million activation milestone on April 24 with 445,000 activations, two months ahead of schedule.
The company also saw 670,000 premises ready to connect, bringing the total up to 11.2 million, just 300,000 away from its target of 11.5 million premises ready to connect by June 30 2020.