Company Interview / Aussie Broadband targets acquisitons to grow

Key points:

Net profit impacted by $15 million goodwill impairment while underlying EBITDA displays robust growthSubscriber base grows nearly 14% in a competitive landscapePortfolio strengthened through acquisitions including More/Tangerine, AGL, and NextGenFY28 targets set at $2 billion revenue and $270 million EBITDA, with upgraded and narrowed FY guidance

Aussie Broadband (ASX:ABB) reports a net profit after tax decline of 58%, largely attributed to a nearly $15 million impairment on goodwill from a recently sold business segment. Brian Maher states underlying profit climbs over 24% to $31 million, emphasising that, once one-off costs are adjusted, underlying EBITDA shows solid growth—13.5% for the year and up to 27% on a like-for-like comparison. Maher describes the result as positive, noting that increased marketing spending aligns with expectations amidst tough industry competition.

Subscriber growth stands out, with numbers rising nearly 14% year-on-year despite a highly competitive market. Maher highlights the effectiveness of the company’s growth strategy, pointing to several acquisitions, including a wholesale agreement with More/Tangerine, expected to add almost 290,000 connections in the next half. The acquisition of telco assets from AGL (ASX:AGL) is set to bring 210,000 broadband and 140,000 mobile connections, bolstered by a long-term exclusive partnership. The NextGen acquisition fills a gap in the business, particularly, the 5-50 seat SME segment, complementing Aussie Broadband’s existing strengths.

Looking ahead, Maher says the focus will be on consolidating recent acquisitions and contracts with an ambition to reach $2 billion in revenue and $270 million EBITDA by FY28. Updated guidance sees a narrowed range, now between $162 million and $167 million.