$800m Revenue for FY2023 Aimed by Aussie Broadband

According to Aussie Broadband, higher margin business, enterprise, and government customers, will aid in driving revenues to around $800 million in FY23. 

Along with this, co-founder and managing director Phillip Britt said that with the full-year benefit of Over the Wire, Aussie Broadband will reach an EBITDA margin excluding integration costs of circa 10.0% to 10.5% in FY23.

Additionally, he said that by 2025, Aussie Broadband intends to have more than one million broadband services, 250,000 mobile services, and three million numbers on its voice network. 

“We have achieved strong growth in revenue, earnings and market share, and are well positioned to achieve our goal of becoming Australia’s fourth largest communications company,” he said.

“Each of our different divisions are showing great potential for growth and has contributed meaningfully to both EBITDA and revenue over the past year,” he further added.

“Our business and wholesale segments are showing the greatest potential for growth.”

“Today we are growing a complete communications and technology solution across multiple market sectors,” he said. 

“While we no longer think solely in the context of broadband connections, it was very pleasing to see continued growth in this metric.”

“While there are several competitor low/no-margin offers in the residential broadband market at present, Aussie Broadband will not chase growth at any cost and is focused on striking the right balance between growth and margin,” he said. 

“There are no price increases factored into our FY23 base. We’re still considering what our position is on price rises and the effect that they might have on the market.”

“Recent changes to plans and advertising strategy saw 50% of mobile sales in June 2022 generated by new customers versus an FY22 average of 33%,” he said. 

“This trend has continued into July with 60% of mobile sales generated from new customers, showing the opportunity to upsell mobile only customers to broadband.” 

In terms of the SAU progress, Britt said that the proposal is still “a work in progress.”

“The biggest improvement in the proposed cost structure is in the high-speed tiers where Aussie Broadband over indexes [CVC],” he said. CVC is currently planned to be phased out over three years with expected implementation set for July 2023."

“I think there's still a bit more water but to go under the bridge with this before [the SAU is] finalised,” said Britt. 

“Whilst it’s delivered a big improvement on what we saw from the March SAU, it's still got elements in it which need work...NBN sort of described it as when...basically everyone’s unhappy, including them, we’ve probably reached the right spot...I think there’s some credence in that.”