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NBN Revenue Up 36% Despite $3.78B Deficit

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The NBN Co has surpassed its corporate plan target by over 230,000 premises, while notching a 36% year-on-year revenue lift and $3.78 billion deficit.

The loss was weighed down by $2.4 billion in subscriber expenses to Optus and Telstra.

For the year ending June 30, active premises notched 7.3 million, with the monthly residential average revenue per user (ARPU) climbing just $1 versus the previous year to $45.

The government-backed company states around 11.83 million businesses and homes are ready to connect to the network. beating its corporate plan target by over 230,000 premises.

The revenue lift was also $100 million higher than forecast, despite giving out over $80 million in capacity to providers to aid a spike in COVID19-related demands.

“The most important thing we’ve delivered this year has been 10 years in the making. We completed the initial build of the national broadband network on time so that Australians had access to secure, resilient, high-speed broadband when they needed it most,“ states NBN Co CEO Stephen Rue.

EBITDA before subscriber costs notched $1.77 billion – up a notable 190% year-on-year.

“When the impact of the COVID-19 crisis became apparent in March, we worked quickly to establish an industry and world-leading response to increased network utilisation, offering pricing relief for up to 40 per cent additional CVC capacity to participating internet retailers at no extra cost.” adds Rue.

The company has extended its retailer capacity offer to September 19, with no confirmation on whether another extension will be applied.

Capital expenditure dropped to $5.04 billion, which is deemed a reflection of decreasing construction work as the project roll-out nears completion.

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