NBN Co’s turnover up 43% in FY 2019 following jump in activations

15 Aug 2019

NBN Co, the company overseeing the construction and operation of Australia’s National Broadband Network (NBN), has announced it generated a turnover of AUD2.83 billion (USD1.9 billion) in its most recent financial year, which ended 30 June 2019. With this figure representing a 43% year-on-year increase, the company said revenue growth had been driven by a sizeable rise in activations on the NBN.

In terms of other key financial indicators, NBN Co reported that EBITDA for FY 2019 totalled AUD608 million (after excluding subscriber payments of around AUD2 billion to Telstra and Optus), compared to a AUD103 million loss in the previous fiscal year. Meanwhile, capital expenditure was reported at AUD5.9 billion for the period under review, up 3% on an annualised basis, with the company saying this growth ‘correlates to the biggest single year for network construction’.

With regards to operational data, NBN Co reported that as at end-June 2019 there were a total of 9.954 million premises classified as ready to connect within its network footprint, with the largest number of these – 4.340 million, up from 3.754 million – serviceable via fibre-to-the-node (FTTN) technology. HFC-based connectivity saw the greatest increase in availability, with more than two million premises covered by the technology at mid-2019, compared to less than half a million premises a year earlier. In terms of actual uptake, meanwhile, NBN Co reported a total of 5.532 million active premises for the NBN at 30 June 2019, up from 4.036 million at mid-2018, with FTTN being used to connect the largest proportion of those – 2.711 million, up from 2.072 million.

Commenting on the results, and looking to the future, NBN Co CEO Stephen Rue said: ‘FY19 has been the company’s biggest single year of progress on the build and, more importantly, we’ve welcomed 1.5 million new customers to the NBN in the last twelve months. And here today, I am pleased to confirm that the construction of the NBN access network – the largest infrastructure project ever undertaken in Australia – is on track and remains on schedule for completion by 30 June 2020.’

Australia, NBN Co