Aussie Broadband’s revenue tops $1b on big customer wins and a rise in connections

Aussie Broadband (ASX: ABB) topped $1 billion in revenue in FY25 as the Australian telco’s full-year performance was boosted by a sharp rise in broadband connections, a surge in wholesale partnerships and bringing on board several major business and government customers.  

The Melbourne-based company recorded a 24.5 per cent increase in net profit after tax to $32.8 million as revenue rose 18.7 per cent to $1.18 billion for the 12 months to the end of June.

Underlying EBITDA increased 14.7 per cent to $138.2 million, which was at the top end of the company’s upgraded guidance announced in February.

The solid earnings result pushed up Aussie Broadband shares by 21 per cent to a high of $5.40 today. The shares were trading at $5.30, up 84c, at 2.59pm.

CEO Brian Maher says the group grew its customer base and earnings in FY25, while “positioning the company for long-term success”.

“Across the group, we now support more than 1.1 million services with a diversified offering that caters to the varied needs of our customers,” says Maher.

“Aussie Broadband’s reputation as a premium provider of fast-speed broadband and mobile products, as well as a trusted partner for voice, messaging and wholesale services, is delivering market share gains and solid growth in our sales pipeline.”

On a like-for-like basis, group revenue grew 12.4 per cent in FY25, driven by double-digit revenue growth across residential, business, E&G (enterprise and government) and wholesale segments.

“We added several notable names to our growing portfolio of customers and partners, further improving our credentials in the market,” says Maher.

Among the business customers signing new agreements with Aussie broadband are Cricket Australia, Queensland Police Service and Maurice Blackburn Lawyers.

Residential achieved net growth of 67,000 connections in FY25, supported by the launch of low-cost telco Buddy which reached almost 14,000 customers in its first year.

Underlying EBITDA was driven by “diversified revenue streams, favourable market dynamics across core segments, and improved productivity”.

“Over the year, we took the opportunity to increase our investment in core platforms and capacity to ensure Aussie Broadband is well positioned for long-term sustainable growth with a secure and resilient network,” says Maher.

“We continued to invest in our owned Aussie Fibre network, with a focus on winning customers in on-net and near-net buildings within our existing footprint, which will increase utilisation and improve return on invested capital.”

During the year, Aussie Broadband repaid $90 million of borrowings, putting the company on a solid financial footing with a net leverage ratio of 0.9x. Maher says this provides flexibility for the group to pursue strategic growth opportunities.

Aussie Broadband has today reported about 12,100 net new broadband connections have been secured since the beginning of the current financial year, while Buddy has secured almost 16,000 connections during the same period.

Aussie Broadband is targeting underlying EBITDA of between $157 million and $167 million in FY26, representing annual growth of 14 to 21 per cent for the group.

The company is paying a final dividend of 2.4c per share, bringing the full-year payout to 6.4c which includes a special dividend of 2.4c declared in February.