Company Interview / Aussie Broadband's connection surge

Key bullet points:

NBN upgrades to FTTP and HFC technologies drive faster speeds for Aussie Broadband (ASX:ABB) customers Subscriber base grows 15% year on year to nearly 800,000 Six-year wholesale deal with more and Tangerine Telecom adds up to 250,000 connections Financial results show 19% revenue growth with sustained shareholder returns

Aussie Broadband (ASX:ABB) stands to benefit significantly from the NBN’s Accelerate Great program, according to Brian Maher. He points to upgrades that deliver up to five times faster internet speeds for many customers, with those on fibre to the premises (FTTP) or hybrid fibre coaxial (HFC) technologies seeing headline jumps in their plans almost overnight. Maher highlights that 56% of Aussie Broadband’s customers are on 100 speed or higher, allowing most to take full advantage of these improvements. He considers this a step that brings Australia up to international standards for broadband speeds and reinforces the company’s advocacy for better services and speeds.

Maher outlines subscriber growth of 15% year on year, equating to an additional 104,000 connections and pushing the company close to 800,000 total. Aussie Broadband now holds an estimated 8.4% market share by NBN connections, up 1.1 percentage points. The company’s new six-year wholesale agreement with more and Tangerine Telecom—whose key investor is CBA—will further increase connections, with 250,000 connections migrating by the end of the financial year. The divestment of Buddy Telco aligns with this strategy, reducing direct competition with wholesale partners.

Financial results reveal revenue up 19% to nearly $1.2 billion, a 14% increase in underlying EBITDA, and a combination of share buybacks and dividends supporting shareholder returns. Maher sees ongoing industry fragmentation but expects regulatory demands will foster some consolidation over time.