NBN Co sees net loss widen despite revenue increases in 1H20

11 Feb 2020

Australia’s NBN Co, the company overseeing the construction and operation of the National Broadband Network (NBN), has recorded a greater net loss in the six-month period ended 31 December 2019, despite a notable increase in revenues. NBN Co reported that in the first half of its 2020 financial year, it generated a total turnover of AUD1.813 billion (USD1.21 billion), up from AUD1.301 billion in the corresponding period a year earlier. Meanwhile, EBITDA before subscriber costs totalled AUD775 million, up from AUD213 million in 1H19, although when including subscriber costs the company reported a negative EBITDA of AUD663 million, compared to a positive EBITDA of AUD213 million in 1H19. With subscriber costs rising to AUD1.438 billion in the six-month period under review, NBN Co reported a net loss of AUD2.817 billion for 1H20, compared to a net loss of AUD2.152 billion a year earlier. Capital expenditures meanwhile totalled AUD2.517 billion, down from AUD2.908 billion in 1H19.

With regards to operational statistics, NBN Co reported that the number of premises classified as ready to connect at the end of 2019 totalled 10.491 million, up from 8.099 million a year earlier, while the number of active premises reached 6.439 million, up from 4.667 million. Of the active premises number, the lion’s share of connections were being made via fibre-to-the-node (FTTN) technology, which numbered 2.887 million at end-2019, up from 2.452 million a year earlier. Meanwhile, HFC and fibre-to-the-premises (FTTP) technologies were the other major access types, standing at 1.388 million (Dec-18: 511,832) and 1.364 million (Dec-18: 1.269 million), respectively.

Australia, NBN Co