Freshly listed telco Aussie Broadband has pointed to strong retail revenue, business customer growth and a careful approach to the National Broadband Network (NBN) as being behind its updated full-year earnings guidance.
The company, which listed on the Australian Securities Exchange (ASX) late last year, has told shareholders that, based on preliminary, unaudited management accounts, it expects its 2021 financial year pre-tax earnings (EBITDA) to be within the range of $16 to $19 million.
Minus initial public offering (IPO) costs, EBITDA is now expected to be in the range of $17 to $20 million.
This marks a welcome bump for a company that listed just a handful of months ago with a prospectus forecast of EBITDA, excluding IPO costs, of $12.3 million.
Aussie Broadband told shareholders that the increased EBITDA forecast was driven by strong retail average revenue per user (ARPU) growth, customer growth in the business segment, careful NBN connectivity virtual circuit (CVC) management and NBN promotional rebates.
Meanwhile, the rollout of the company’s optic fibre network to 76 NBN points of presence (POIs) and over 20 data centres continues, with a complex section of the Sydney build nearing completion.
“Construction is now underway in Western Australia [and] Queensland, and continues in New South Wales and Victoria, with South Australia due to start in coming weeks,” the company told shareholders. “The project is now running at scale, with multiple projects and site builds occurring simultaneously.
“The company anticipates completing 28 to 31 POI and data centre sites by 30 June 2021 with a significant pipeline of work underway due for completion in the first half of FY22. Customer interest for direct fibre connections on the Aussie network remains strong with 24 customer builds in progress and over 250 prospects in the sales pipeline,” it said.
Aussie Broadband listed on the ASX with a $40-million IPO in October last year, with 40 million shares offered at $1 a share, giving the company an initial market capitalisation of $190.3 million.
It was proposed that funds raised from the IPO would be used to accelerate infrastructure development, acquire new customers and expand its business product offering.
“Our own fibre in the ground goes to the heart of our approach to the business. It means that we can control quality and improve our customer experience even more, and it means we can start to drive down our backhaul costs,” said CEO and managing director Phil Britt at the time.