nbn’s revenue up 158% y-o-y as active users increase to over 900,000

6 May 2016

nbn (formerly NBN Co), the company overseeing Australia’s National Broadband Network (NBN) project, has released its financial results for the three months to 31 March 2016, reporting ‘growth across all key metrics’. In the period under review, nbn generated a total turnover of AUD111 million (USD80 million), an increase of 158% compared to the corresponding period a year earlier, with revenues from fibre-to-the-premises-based (FTTP-based) services accounting for more than half of that (AUD61 million). EBITDA in the quarter ended 31 March 2016 totalled AUD383 million, up from AUD288 million, while EBIT was AUD603 million, representing a 33% year-on-year increase. Capital expenditure in the nine months to end-March 2016 meanwhile was AUD3.360 billion, up from AUD2.235 billion in the same period a year earlier.

As at end Q1 2016 nbn had 902,948 active end-users on its books, up from 388,841 a year earlier, with the lion’s share – 725,071 – connecting via FTTP, while satellite, fixed-wireless and fibre-to-the-node (FTTN) accesses totalled 34,869, 99,455 and 43,553, respectively. In terms of connections speeds, 15% of nbn’s fixed-line end-users were signed up to a service offering downlink rates of 100Mbps, while the largest proportion – 47% – were on a 25Mbps plan. Meanwhile, for those customers connecting via fixed-wireless, the majority (83%) were also on a 25Mbps speed tier. A notable milestone was reached, with the number of premises classified as ready for service surpassing two million, up from 1.671 million at the end of 2015 and 963,476 at end-March 2015.

Commenting on the company’s performance, and noting that nbn was on track to meet its financial year plan, chief executive Bill Morrow was cited as saying: ‘The team’s focus and determination has delivered another successful quarter, our eighth in a row … nbn is ahead of plan on activations, which is translating through to improved earnings. The experience and satisfaction of our end-users is positive and we are now connecting, on average, 14,000 new premises each week. We continue to demonstrate our ability to scale and deliver against increasingly challenging targets.’

Australia, NBN Co