Half Year 2024 Aussie Broadband Ltd Earnings Call Transcript
Key Points
- Aussie Broadband Ltd (ASX:ABB) reported double-digit revenue and EBITDA growth, with revenue increasing by 18% to AUD 446 million and EBITDA growing by 13% to AUD 46 million.
- Operational cash flow jumped 58% to AUD 41 million, reflecting strong underlying business performance.
- The company successfully raised AUD 140 million in capital, strengthening its balance sheet and providing capital for future M&A opportunities.
- Aussie Broadband Ltd (ASX:ABB) increased its NBN market share by 1.3 percentage points to 8.3%, continuing its growth trajectory.
- The acquisition of Symbio Holdings is expected to add significant value, with anticipated synergies of at least AUD 5 million and potential for further revenue synergies.
- The Residential segment experienced a modest decline in gross margins, impacted by unfavorable mobile data charges and intense promotional activity.
- The Enterprise & Government segment saw a decline in revenue due to reduced one-off nonrecurring revenue, despite growth in recurring revenue.
- Elevated churn was observed following the repricing of NBN plans, although it was lower than anticipated.
- Higher marketing expenses impacted EBITDA growth, reflecting increased investment in retail, business, and mobile marketing strategies.
- The company faced challenges with mobile data pooling arrangements, leading to excess data charges and impacting margins in the first half.
Thank you for standing by and welcome to the Aussie Broadband Limited First Half Fiscal Year 2024 Results Call. (Operator Instructions)
I would now like to hand the conference over to Mr. Phillip Britt, Managing Director. Please go ahead, sir.
Thank you. Good morning, everyone, and welcome to Aussie Broadband's first half FY '24 results call. My name is Phillip Britt, and I'm the Managing Director of Aussie Broadband. And with me today we have our CFO, Brian Maher. As you can see, Aussie delivered a cracking result for the first half and the company continues to demonstrate why we're one of Australia's leading communications and technology services providers.
Before we start the results and move to Q&A, I'd like to begin by acknowledging the Aboriginal and Torres Strait Islanders as the first Australians, and their role as original communicators, connectors, and carers of the lands and waters across Australia. We pay our respects to their elders, past and present.
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