By - Tamnna
- Aussie Broadband’s shares took a jump of over 4% today (9 November) post the Investor Day update.
- The company has acquired Over the Wire for cost efficiency and revenue growth.
Australian telecommunications company Aussie Broadband (ASX:ABB) recorded a gain of 4.048% and were trading at AU$2.570 apiece on the ASX at 2:58 PM AEDT today (9 November).
It seems the shares reacted positively to the company’s Investor Day presentation released today.
As per Aussie Broadband’s Investor Day presentation, the company has acquired the business-focused technology firm Over the Wire to take its operations up a notch while pushing revenue growth and cost efficiency.
The Australian telco business represented this acquisition as a ‘huge opportunity’ to grow, while delivering more value to its shareholders in its Investor Day report. Aussie Broadband is looking forward to higher revenue with this partnership, as per the official ASX filing.
The deal will provide Aussie Broadband access to a complete product set across data, voice, cloud, security, and managed services. Over the Wire offers best-in-class solutions, such as unique data, voice, and cloud infrastructure, to its commercial, government, and wholesale customers.
Aussie Broadband has also accelerated the integration of Over the Wire into its systems by implementing synergies totalling AU$5.2 million to date annually. The investment case is also in place, with expected synergies of AU$8–11 million by FY25.
The company also shared its FY25 aspirations, according to which Aussie Broadband aims to take its broadband services number to over 1 million and mobile services to over 250k. The company also expects voice network numbers to surpass the 3 million threshold and to accelerate cloud services growth.