NBN To Take $50m Revenue Hit
NBN Co has taken a $50 million revenue hit and a possible delay in revenue to the tune of $500 million due to the hiatus in the rollout of hybrid fibre-coaxial (HFC) network.
“It depends on the length of time, of course, but if you take a six-month pause…for the period to June 30, you’re talking around about $50 million,” chief financial officer Stephen Rue, pictured, told a Federal Parliament inquiry hearing on Friday.
“That’s the impact on the revenue for the period to June 30. If the whole program was delayed by six months, what we [would] have, I think, is 1.9 million customers still to connect that we expect to connect.
“So, if all of those 1.9 million customers – and I don’t think that’s necessarily going to be the case – if they were all delayed by six months, you’d be talking about a $500 million delay in revenue,” he said.
Rue also pointed out that NBN Co would continue to build out lead-ins and build into new areas during the pause, and that the full final financial fallout of the pause won’t be known for several months.