Aussie Broadband trims losses as market share grows

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Aussie Broadband trims losses as market share grows

Aussie Broadband has posted a bumper 2021 financial year as its overall customer base took a leap during the period, amid the COVID-19 restrictions.

In the 12 months ended 30 June 2021, the ASX-listed telco reported revenue of $350.3 million, up 84 percent year over year from $190.5 million in 2020. Its net loss after tax declined 63 percent from $12.3 million to $4.5 million.

A major driver of the growth was an increase in its customer base across broadband and its mobile business. Overall broadband services grew 53 percent from 261,361 to 400,848 during the period.

Most of the growth was from residential, which was up 50 percent from 241,627 to 363,350, but its business and wholesale services grew faster at around 90 percent, increasing from 19,734 to 37,498.

Mobile services, via an MVNO agreement with Optus, increased 102 percent during the period to 25,606.

Aussie Broadband managing director Phil Britt said the company had an “extraordinary” performance in a year of significant disruption by COVID-19.

“We have staff spread across Australia who, like our customers, have all experienced different forms and lengths of lockdown throughout the year,” Britt said.

“The pandemic has highlighted the importance of reliable internet in our daily lives. Despite the challenges, our team has continued to deliver great network performance and great customer service to our customers, which are critical factors underpinning our growth.

“We’re in business to change the telco game, and our staff are doing that each and every day with our high-quality network, clever technology and a focus on being good to our customers.”

The telco also provided an update to its fibre rollout, with some 250 kilometres of dark fibre construction completed, along with connections to 25 data sites and NBN points of interconnect (POIs).

The rollout remains on track to compete sometime in FY2022, with a total of 106 POIs and data centres and 1200 km of fibre.

Looking ahead, Aussie Broadband said it expects another recond month for broadband and mobile sales in August after also breaking the monthly record in July.

The telco also warned of “challenges” related to the ongoing COVID-19 lockdowns in some Australian states due to the increase in NBN bandwidth, but expects the relief from NBN Co to partly mitigate the expenses incurred.

Aussie Broadband did not provide guidance into FY2022, citing the “dynamic and changing nature” of the retail telecommunications market, ongoing lockdowns and the impact on NBN CVC expenses.

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