Australian operated telecommunications product and service providers, Aussie Broadband Limited (ASX:ABB), has shared an overview of the company that includes its financial performance, a summary of customers, recent acquisitions completed, outlook and so on. The presentation released is part of the Ord Minnett Technology conference presentation. It seems to grab the interest of the investors as share prices were pushed to AU$5.44 at 10:25 AM AEDT, up 2.4% on the previous close.
In last 12-months, Aussie Broadband’s share prices surged by over 88% and year-to-date to prices has increased by over 14%.
Over the Wire acquisition
Over the Wire (OTW) is an IT solutions and high margin telecommunication service provider that is focused on wholesale, government, enterprise and medium business customers. Aussie Broadband hadacquiredOTW for approximately AU$390 million intending to leverage each other’s core strengths, solutions and technologies.
Aussie Broadband said that the acquisition would add new capabilities to the companies’ existing products and services. Now their customers can also access a range of security solutions, switching, Wi-Fi, and cloud services. Moreover, Aussie Broadband enjoy access to over 61,000 wholesale, government, and business customers.
Aussie Broadband customers are limited to Australia only; however, OTW customers demographics include New Zealand. Thus, the company will also get access to New Zealand customers.
Key financial highlights
Recently, Aussie Broadband released its financial results for the first half of the financial year 2022. In the six months, the company reported revenue of AU$229.3 million, a 46% increase on a prior corresponding period (pcp). The total broadband services surged by 45% on pcp with a 67% increase in business broadband services. The mobile services increased by 70% in a year.
The quality of the company’s services can be assessed from the AESA award and the customer satisfaction score of 8.2/10.
Worth mentioning here is that the share purchase plan and share placement boosted the cash and cash equivalent of the company by 195% on pcp. Also, with the fibre network roll out, the value of property, plant and equipment increase by 132% on pcp.
2HFY22 guidance
Aussie Broadband expects to generateEBITDAin the range of AU$27 million to AU$30 million in the full year 2022. The company said that the performance of 2HFY22 will be driven by the continuous growth in connections, no further lockdowns, reduced cost of employee and administration, and comparable marketing costs. Also, the broadband company expects to complete the white label connection migration during the second half.
In the 2HFY22, the expected addition of 85,000 to 95,0000 broadband connections. On 30 June 2022, the company anticipates that the total active broadband connections will reach 580k to 590k.
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