Aussie Broadband (ASX:ABB) shares trade in green today; here’s why

2 min read | November 09, 2022 06:13 PM AEDT | By Tamnna

Aussie Broadband (ASX:ABB) shares trade in green today; here’s why — Image source: © Sasinparaksa | Megapixl.com

How did Aussie Broadband’s Investor Day update play out?

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.

A glance at Aussie Broadband’s FY23 financial highlights

The company reaffirmed its FY23 guidance with an EBIDTA margin of c10–10.5% on an expected revenue of AU$800–840 million.
Aussie Broadband has invested in capability and infrastructure for longer-term growth, including:
- Integration of new systems, such as NetSuite, Workday, Calabrio, Webex Contact Centre, and CVC management tools.
- Focus on analysing the market and product development.
- Investments in sales, security, and network.
- Actioned synergies of AU$5.2 million with expectations of more towards the end of FY23.

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