Aussie Broadband’s strategic swap: buying telephony, selling cloud, and targeting top-tier status

Telco upstart aims to be third largest NBN provider, rings in strong financials and gets out of the cloud business

Aussie Broadband has reported a group revenue of $637.8 million, for the half year ended December 31, 2025, up 8.4 percent on the prior corresponding period.

It also reported a 13.4 percent growth in on-net broadband connections since the end of December 2024, and an underlying NPATA of $31.3 million, up 24.5 percent.

Along with the financials, the telco, which claims it is positioned to become the third largest NBN service provider by the end of this year, also announced the acquisition of Nexgen Investment Group, a provider of business communications solutions, from Infotrust Limited, along with the divestiture of Digital Sense, a Brisbane-based cloud MSP, to 11:11 Systems.

Speaking about the financial results, Aussie Broadband group chief executive, Brian Maher, said in a statement the results reflect the continued organic growth of its connections, along with the acquisition of new customers and partners.

Retail customers are increasingly opting for higher speed connections, he said, with 70 percent on plans of 100Mbps or higher.

“We see opportunities to increase high-speed penetration further as fibre becomes more widely available and households upgrade broadband plans to meet their growing data needs,” he said in a statement.

The Business, Enterprise and Government sector of its business also achieved double-digit revenue growth and “continued high gross margins” driven by a 14.9 per cent increase in broadband connections and more than 5,200 new mobile services.

Nexgen and Digital Sense deals

In a statement, Aussie Broadband said the Nexgen acquisition will “deliver complementary modern business telephony solutions, data and hardware capability platforms to drive SME growth.” And AI hasn’t been left out of the picture, with the telco flagging an agentic product set, also targeted at SMEs.

Chief executive Maher said in a statement Nexgen aligns strongly with Aussie Broadband’s growth ambitions as it seeks to strengthen its position in the SME market.

Aussie Broadband is paying an upfront cash consideration of $44.1 million to acquire all Nexgen. The funds are payable at the completion of the deal.

Divesting MSP Digital Sense aligns with Aussie Broadband’s ‘Look-to-28’ strategy, which has seen the company focus on communications, rather than a broader technology remit.

Marc Beder, general manager, APAC, at 11:11 Systems said the Digital Sense buy is intended to complement the company’s existing presence in NSW and Victoria.

Beder said the Digital Sense branding will disappear over time as the company is rolled into the 11:11 Systems brand.

“The transition will be handled carefully and over time to ensure minimal disruption to customers and partners,” Beder said.

CRN has reached out to Aussie Broadband for additional comment.