Aussie Broadband has increased its wholesale and white label services to reach more than 60,000 at the end of June 2022, up from just over 2,100 services in the previous year.
The growth was credited to the telco’s first white label customer, Origin Energy, which completed its migration sometime in Q4 FY2022.
In its unaudited financial results released today, Aussie also reported a 68 percent year over year increase in business broadband services to 59,488 by the end of June 2022, with contributions from recent acquisition Over The Wire (OTW).
This growth also contributed to overall broadband services for the period, up 46 percent year over year to reach 584,793, with residential services at 464,979 services, which was up 28 percent in FY2022.
“We are pleased with this result given the third quarter challenges we faced, and have been very focused on addressing over the past three months. Pleasingly, TV marketing has recommenced at customer acquisition costs more reflective of historic levels, and our call centres are returning to their previous strong customer service levels in terms of wait times,” Aussie Broadband managing director Phillip Britt said.
“The acquisition of Over the Wire has bolstered Aussie Broadband’s business segment product and skills capability. It added 16,000 business, enterprise, government and wholesale customers. The integration is progressing as planned and we have already started generating revenue synergies from the combination of the two businesses, including two large regional health alliance and shire council deals recently signed.”
Aussie said OTW has also moved new orders for its NBN business services to Aussie at the start of Q4 FY2022, while the migration of OTW’s existing NBN business services from other providers onto Aussie Broadband’s network is “well advanced” and is expected to be completed during Q1 of FY2023.
The integration of OTW into Aussie is also “progressing well”, according to the company, with a new operating structure set to start from Q1 FY2023.
“Synergies relating to the migration of Aussie voice traffic onto the Over the Wire tier 1 voice network have yielded $2.9 million in annualised savings, higher than our original investment case,” Britt said.
“A further annualised $2.3 million in other run rate synergies have been achieved, taking the total cost synergies achieved to date to $5.2 million annualised. Our investment case of $8 million to $12 million of annualised cost synergies remains unchanged.”
The telco also revealed its fibre project is 90 percent complete, with some weather events during Q4 delaying the final 10 percent into Q1 of FY2023. Aussie is migrating services from existing Telstra backhaul agreements onto its new fibre network, with 105 of 201 points of interconnect (POIs) migrated at the end of FY2022. Aussie said it expects the network to generate $13.5 million of year-on-year savings.
Looking ahead, Aussie expects to report EBITDA of close to the top end of its guidance range of $38 million to $39 million.