Aussie Broadband nabs 15 percent of NBN enterprise orders

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Aussie Broadband nabs 15 percent of NBN enterprise orders
Phil Britt (Aussie Broadband)

Telecommunications company Aussie Broadband revealed it secured 15 percent of all NBN Enterprise activation orders as of the second quarter of FY2022, according to the company’s latest financial results.

The telco also increased the total number of broadband connections on its books by 11 percent in the last three months of 2021. Connections increased by 48,756, which included 8,725 white label connection migrations.

The company’s NBN market share, excluding satellite, is expected to be 5.66 percent on 31 December 2021, up from 5.17 percent on 30 September 2021. Total services increased by 55,878 during the period, which equated to a 10 percent increase.

“We’re very pleased with how all segments have performed across the quarter, despite the Christmas period impacting residential sales slightly” Aussie Broadband managing director Phillip Britt said.

“The business segment remained strong. So far in 1H FY22 we have taken 15 percent of all NBN enterprise ethernet net service activation orders. We continue to be excited about our Carbon platform (our self-service platform for business), it now has more than 10,000 active services and over 400 MSPs (managed service providers) onboarded.”

“The second quarter remained strong for new white label connections, boosted by the migration of our major white label customer’s existing services moving onto the ABB network. The organic growth of more than 9,000 new white label connections, and the migration of 8,725 existing services, increased the wholesale and white label segment which grew by 188 percent when compared to 1Q. The white-label migration will complete in 3Q.”

“Whilst first half EBITDA has been impacted by increased promotional costs, and CVC expense due to lockdowns, we expect to see the benefits of operating leverage in 2H FY22 with employee, marketing and administration expenses expected to be lower as a percentage of revenue. 

“The second half will also benefit from the organic connection growth achieved in the first half, additional white label migrations, and operating leverage to produce a full year EBITDA in the range $27m to $30m. This validates our strategy of continuing to invest in connection growth at the expense of short-term EBITDA gains.”

Business broadband net additions were 5,348, a 13 percent increase over the previous quarter.

Demand for Aussie Broadband business services has continued to remain strong with ABB taking 15 percent of NBN enterprise ethernet service orders in FY22 year to date.

The company's Carbon platform for MSPs grew from zero to 10,240 services in the past 18 months. The platform has over 400 MSPs onboarded and Aussie said it will continue to assist in driving growth in this segment.

The platform allows MSPs to quote, order, connect, manage, and support end customer connections across a range of technologies including NBN, enterprise ethernet, voice and mobile sims.

The company is continuing to develop the Carbon platform adding additional technologies and services.

Wholesale and white label broadband

Wholesale and white label net additions for 2Q were 17,826 made up of 8,725 migrated white label services in addition to net organic growth of 9,101 services during the quarter.

Further white label services will be migrated in 3Q in addition to organic growth.

The company said it continues to pursue further white label opportunities with new partners to drive further growth in this segment.

The company reported that migrations from the Telstra mobile agreement to the new Optus agreement were now complete.

Mobile net additions for 2Q were 2,647 or 31 percent lower than in 1Q due to a combination of factors including limited availability of mobile handset options, some loss of services due to coverage following the migration to the Optus network, and delays in providing the ability for customers to sign up online for mobile services.

Online mobile sign up was introduced in early December for residential customers, and MSP customers are now able to purchase mobile SIMs through Carbon which has led to an increase in business mobile sales.

However, it said that limited handset availability due to global chip shortages had hindered growth in mobile services.

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