- Telcom service provider Aussie Broadband is gaining attention following latest quarterly results.
- The company expects full year EBITDA guidance between AU$27 million to AU$28 million.
- ABB shares have gained 34% in the last three months.
The shares of telecom service provider, Aussie Broadband Limited (ASX:ABB), are trading 24.460% lower at AU$4.200 per share at are gaining attention following its Q3 FY22 trading update.
Investors have been keeping the stock on their radars after the company updated on its EBITDA guidance in its quarterly report.
Meanwhile the scrip traded 23.201% lower at AU$4.270 at 1:10 PM AEST.
Q3 FY22 overview
As per the release, the company witnessed an 11% increase in its broadband connections in 3Q FY22. It has delivered consistent broadband services growth over the last three quarters.
- Business broadband services increased 10% from the previous quarter.
- ABB’s wholesale and white label services increased by 91%, from 27,286 to 52,125, including remaining white label migrations.
- 3Q mobile services increased 9% from the previous quarter to 34,985.
- ABB’s share of NBN services increased to 6.19%, and total services increased by 10% in the third quarter.
- Total CVC expense for the quarter stood at AU$4.9 million, up 18% from the forecast. Meanwhile, the company expects 4Q FY22 CVC expense to be lower than 3Q.
The company also completed the acquisition of Over the Wire Holdings Limited in the latest quarter and will include consolidated financials for Over the Wire in its full-year FY22 results.
Managing Director Phillip Britt said the latest quarter remained solid for new white label services and the company anticipates continued organic growth in this segment as it secures ongoing sales driven by industry leading customer service.
The company has provided an updated guidance and anticipates total active broadband connections at 30 June 2022 in the range of 580,000 to 585,000. Further, the company expects a full year EBITDA in the range of AU$27 million to AU$28 million.
ABB share price movement
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The stock has gained 34% over the last three months and 17% on YTD this year.