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Highlights
- The stock value of ABB has gained about 33% in the last 30 days and 14% this quarter to date.
- The company acquired Over the Wire (OTW), a telecommunications and IT services provider, and is delivering AU$5.2 million of annualised synergies.
- The company is looking forward to revenue in the range of AU$800million to AU$840million in FY23.
Shares of Aussie Broadband Limited (ASX:ABB) closed on Friday at AU$2.630 with an uptick of about 5.2%. The Australia-based telecommunications and technology company has gained nearly 33% in the last 30 days and 14% this quarter to date.
Aussie is the 5th largest provider of broadband services in the country and boasts of being one of the only six tier 1 voice providers in the nation.
The company’s key financial metrics have also significantly improved over time. Since June 2018, the company’s total revenue has surged by around 1009.33% from AU$49.3 million to AU$546.9 million. Similarly, its gross profit has surged by nearly 1394.44%.
Below are the key financial metrics and strategic achievements of the company for FY22
- Revenue of AU$546.9million – Up by 56%
- EBITDA before transaction costs of AU$39.4 million – Up by 107%
- Business revenue of AU$105.5 million – Up by 142%
- Acquired Over the Wire (OTW) and delivering AU$5.2 million of annualised synergies
- Launched its white-label solution and onboarded more than 58,000 broadband connections (services)
- Expanded its offering to different segments with cloud, managed services, security and expanded voice solutions
- Upped its software automation, which helped them with a lower staff touch and keeping operations onshore
- Completed the roll out of the Fibre network to the 83 NBN POIs, 22 data centres and 77 multi-storey buildings, unlocking considerable operation savings
- Improved its network infrastructure by means of upgrades to core network equipment, enabling the company to zoom past the mark of 1 million broadband services
FY23 guidance and strategic focus
Considering the current market conditions, operating plan and YTD trading, the company is hoping for revenue in the AU$800million - AU$840million range. It is expecting an EBITDA margin (integration costs not included) of c10-10.5%, up from 7.2% in FY22.
Going forward, below are some strategic focuses of the company for FY23:
- Bed down its new Aussie 2.0 operating model, team structure and strategy
- Tapping the full revenue synergy potential from OTW acquisition by delivering more cost synergies
- Continued investment in data, voice, and cloud infrastructure in a bid to support long-term growth
- Refreshing its marketing strategy to improve growth in all segments and enhance its advertising efficiency
- Development and launch of new products and services to retain its game changer image
- Crank up automation and streamlining of processes to use their scale to the fullest potential and unlock novel operational efficiencies.
