NBN Co sees Q3 revenue just shy of $3B

NBN Co sees Q3 revenue just shy of $3B

Results were solid as the COVID-19 pandemic puts pressure on the network

Credit: NBN

NBN Co has seen its latest quarterly revenue increase by 38 per cent to $2.8 billion in its third quarter results, driven by strong demand, reaching its FY20 activation milestone two months early.

Statutory earnings before tax and subscriber costs were up significantly by 220 per cent to $1.3 billion for the corporation's first nine months ending 31 March.

This places the company on track to reach its 30 June target of $1.55 billion.

Capital expenditure declined to $3.7 billion from $4.3 billion in the corresponding period, while earnings before tax (EBIT) fell by 12 per cent, costing NBN Co $3 billion. 

NBN CO CEO Stephen Rue said the company saw a strong quarter as the impact of the coronavirus pandemic has “accelerated the data demands of the nation beyond what most would have forecast". 

Rue highlighted the fact that the network reached its seven million activation milestone as of 24 April with 445,000 activations, two months ahead of schedule.

It also saw 670,000 premises ready to connect, bringing the total up to 11.2 million – just 300,000 away from its target of 11.5 million premises ready to connect by 30 June 2020.

The push from customers signing up to higher speed tiers saw the residential average revenue per user (APRU) increase to $45, up from $44 over the nine-month period, which was mostly in line with its FYH120 results.

A slight increase compared to its FYH120 results was seen in the uptake of residential and business customers on wholesale speed tiers, rising by 1 per cent up to 68 per cent, with over 80 per cent of new customers signing on for speeds of 50 Mbps or more. 

Further, since the beginning of April, approximately 20 per cent of new customers chose wholesale speed tiers of 100 Mbps. 

Business revenue was also up to $496 million over the nine months to 31 March, up from $341 million from the previous period. 

Recently NBN Co sourced $6.1 billion from Australian and international banks for flexibility during the coronavirus pandemic.

Meanwhile, April saw the corporation extend its offer of a 40 per cent increase in capacity to retail service providers (RSPs) for an extra two months and a $150 million relief and assistance package to consumers and businesses that have been affected by the pandemic .

NBN Co was granted temporary authorisation by the Australian Competition and Consumer Commission (ACCC) to join forces with Telstra, Optus, Vodafone Hutchison Australia (VHA), TPG and Vocus to keep businesses and consumers connected and supported during the impact of COVID-19

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