Aussie Broadband – 1H25 Results Summary
Overall Report Tone
📈 Aussie Broadband delivered strong revenue growth (+32.0%) and profit expansion (+23.8%) in 1H25, driven by broadband subscriber growth and the acquisition of Symbio. While operational efficiency improved, higher operating expenses impacted margins. The company declared both an interim dividend (1.6c per share) and a special dividend (2.4c per share), fully franked.
📊 Financial Results
| Metric | 1H25 | 1H24 | % Change |
|---|---|---|---|
| Revenue | $588.49M | $445.95M | +32.0% |
| Profit After Tax | $12.16M | $9.82M | +23.8% |
| Adjusted EBITDA | $65.8M | $46.3M | +42.1% |
| Operating Cash Flows | $16.3M | $39.3M | -58.5% |
| EPS (Basic) | 4.11c | 3.93c | +4.6% |
| Dividend (Interim + Special) | 4.0c (fully franked) | N/A | N/A |
🆕 New Information Provided
✅ Acquired Symbio Holdings on 28 February 2024, adding $103.8M in revenue for the half-year.
✅ Exited Origin contract by 31 October 2024, shifting focus to higher-margin broadband business.
✅ Broadband connections grew 6.4% to 728,000, expanding NBN market share to 7.8%.
✅ Net borrowings reduced from $138.0M to $101.1M, strengthening financial flexibility.
✅ Gross profit margin expanded from 34.6% to 37.0%, highlighting pricing power and operational efficiencies.
🔥 Positive Surprises / Strengths
🚀 Revenue surged 32% YoY, driven by organic growth and Symbio acquisition.
🚀 EBITDA rose 42.1%, reflecting stronger margins and cost control.
🚀 Broadband subscriber growth of 6.4%, reinforcing market leadership.
🚀 First-ever dividend (4.0c per share) declared, signaling confidence in cash flows.
⚠️ Potential Concerns / Risks
🔴 Operating expenses increased from 24.2% to 25.8% of revenue, driven by higher costs from Symbio integration.
🔴 Cash flow from operations declined 58.5% YoY, impacted by higher tax payments and working capital changes.
🔴 Network and hardware expenses rose by 27%, squeezing profit margins.
🔴 Increased debt repayments,, though liquidity remains strong.
📉 Results vs Market Expectations
📌 Revenue and profit exceeded expectations, driven by strong subscriber growth and acquisition synergies.
📌 EPS of 4.11c met forecasts, indicating steady earnings growth.
📌 Dividend marks a new phase in shareholder returns.
📌 Weaker operating cash flows disappointed, but long-term outlook remains positive.
🔭 Outlook and Guidance
🔹 Continued broadband subscriber growth expected, with market share gains in NBN and enterprise segments.
🔹 Further synergies from Symbio acquisition, improving profitability in 2H25.
🔹 Expansion into business and enterprise services, diversifying revenue streams.
🔹 Improved cash flow expected in 2H25, as working capital stabilizes.
🌍 Market Positioning
💡 Aussie Broadband is a key challenger in the Australian telco sector, competing with major players like Telstra and Optus.
💡 Acquisition of Symbio expands capabilities, positioning Aussie for enterprise and wholesale growth.
💡 Strong brand reputation continues to drive customer acquisition and retention.
💡 Strategic divestment from non-core operations, focusing on higher-margin segments.
📈 Share Price Performance
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.
Quick Take: H1FY25 ASX:ABB