Shrinking Telstra Optus Payments Boost NBN Earnings Revenues Set To Grow
Shrinking payments to Telstra and Optus for access to their copper network has seen NBN earning boosted to $424M in the first half of the 2021 financial year.NBN Co turned its earnings around by more than a billion dollars in the half year to December 31 this compared to a $663 million shortfall in the corresponding prior period.
Optus and Telstra were paid $809 million in the period, compared to $1.44 billion in the first half of the 2020 financial year.
NBN Co said the subscriber costs – payments for the disconnection of their existing broadband services to migrate customers to the NBN – would keep decreasing.
More than 660,000 customers moved to the NBN during the period.
Revenue was up 25 per cent on the corresponding prior period to $2.26 billion, but average revenue per user remained stuck at $45.
This was despite the entity providing internet providers increased capacity on the NBN infrastructure during the pandemic at no additional cost.Challenges in the hybrid fibre cable supply chain had yet to take a toll on the number of premises NBN Co could connect to its network. About 7.9 million premises were connected in the period, putting it on track to reach its goal of reaching 8.2 million connected premises by the end of this financial year.
NBN Co spent $1.42 billion in capital expenditure over the period.“The strong total revenue growth in the first half puts us in solid position to achieve positive full year statutory EBITDA for the first time,” chief executive Stephen Rue said.
He added “We have brought forward our planned network investments to meet the nation’s future needs, and we will continue to invest in the network from a position of financial strength in the years and decades ahead.”
“Demand for higher speed broadband services has accelerated and we have seen and experienced profound changes in the way we work. Our revenue and EBITDA exceeded forecast in the first half, and it was particularly pleasing to see the stronger than expected new customer activation numbers, demonstrating Australians’ reliance on the nbn network to meet their everyday needs.
“The strong total revenue growth in the first half puts us in solid position to achieve positive full year Statutory EBITDA for the first time, which will be a significant financial milestone for the company.
“During the first half, we continued to support the industry and customers through the COVID pandemic with a number of significant measures such as the extension of the additional CVC capacity at no additional cost to internet retailers until the end of January 2021. We also brought forward the release of additional CVC data inclusions on our wholesale 100/40 Mbps, nbn Home Fast, nbn Home Superfast and nbn Home Ultrafast bundle discounts so they were available to internet retailers from 1 December 2020.
“As the digital backbone of the nation, nbn is a critical national infrastructure asset that will continue to support individuals, communities, and businesses during Australia’s economic recovery.