NBN Co 'on track' to achieve full year guidance as revenue rises 12% in H1

10 Feb 2022

Australia’s NBN Co has published its financial results for the six-month period ended 31 December 2021, claiming to have delivered ‘solid half year results’ and saying it remains on track to achieve its full year guidance. In the period under review NBN Co generated a total turnover of AUD2.52 billion (USD1.8 billion), representing year-on-year growth of 12% from the AUD2.26 billion recorded in H1 FY21, driven in the main by ‘growth in the customer bases and ARPU performance’. Meanwhile, the company reported EBITDA including subscriber costs of AUD1.50 billion in the first half of its current fiscal year, up from AUD424 million in the corresponding period a year earlier, saying this metric had continued to increase amid growth in revenue and a declining cost base. With subscriber costs in H1 FY22 falling to AUD126 million, from AUD809 million a year earlier, NBN Co noted it now expects these costs ‘to virtually cease by FY23’. Rounding out its key reported financial metrics, NBN Co revealed that capital expenditure in H1 FY22 totalled AUD1.16 billion, down from AUD1.42 billion in the second half of fiscal 2021.

With regards to operational indicators, meanwhile, NBN Co had connected around 190,000 additional premises to its network in the six months to 31 December 2021 to close the period with a total of 8.4 million premises connected, up from 7.9 million at end-2020. In terms of the number of premises classified as being ‘ready to connect’, NBN Co confirmed this figure had increased marginally, to 12.1 million as of end-2021, up from 11.9 million a year earlier. The company also revealed that at the end of its reporting period 76% of residential and business customers were signed up to a tariff offering peak downlink speeds of at least 50Mbps, up from 70% at end-2021.

NBN Co also offered up a network investment update, in which it said it was making ‘good progress’ on its AUD4.5 billion ‘Network Investment Plan’, under which it aims to make its ‘Home Ultrafast’ speed tier – which offers downlink speeds of between 500Mbps and 1Gbps – accessible to 75% of the premises on its fixed network by the end of 2023. In this area, the company said it was on schedule for a commercial launch of its fibre-to-the-node (FTTN) to fibre-to-the-premises (FTTP) upgrade programme – which will allow customers to upgrade to the latter technology on demand – with the first premises expected to be able to place orders from late March 2022. Having already identified the suburbs and towns where 1.6 million premises currently being served by FTTN will be offered the upgrade, NBN Co has said it will continue to select, design and construct new local fibre network extensions with a view to passing around two million current FTTN premises by the end of 2023. Finally, the company’s HFC network investment programme was also said to be progressing well, with 100% of the 2.5 million premises in this network footprint now having access to downlink speeds of up to 250Mbps (the ‘Home Superfast’ speed tier), while 95% can access the Home Ultrafast speed tier.

Australia, NBN Co