nbn HY24 results

nbn revenue reaches $2.75bn as fibre deployment activity offsets brownfield subscriber losses to wireless competitors.

Heath Gibson · Executive Manager – Industry Intelligence and Insights at NBN Australia8 February 2024Period: H1 FY244 min read

$2.75bn↑

nbn co Total Revenue (H1 FY24)

10%↑

EBITDA growth compared to HY23

Locked

+2more stats

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Abstract

This report analyses nbn co's half-year FY24 results, highlighting a 5% revenue increase to $2.75bn. While greenfield premises growth remains a strong contributor with +87k ready-to-connect additions, the company faces ongoing challenges in brownfield areas where subscriber losses continue due to wireless substitution. The analysis explores the impact of the Special Access Undertaking (SAU) repricing, the $1.92bn capital expenditure program focused on FTTN/C to fibre upgrades, and the strategic implications of rising competition from 4G/5G fixed wireless access.

Key Takeaways

nbn reported H1 FY24 revenue of $2.75bn, a 5% increase driven by fibre deployment and government co-investment.
EBITDA grew by 10% and operating cash flow by 15% due to a 6% reduction in operating expenses.
Greenfield premises remain a growth engine with +87k ready-to-connect additions and +47k active premises.

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Frequently Asked Questions

Financial performance is strengthening, with EBITDA growing 10% and operating cash flow increasing by 15% in H1 FY24. This margin expansion is underpinned by a 5% rise in total revenue to $2.75bn and a disciplined 6% reduction in operating expenses.

Growth is almost entirely driven by new developments, which added 87k ready-to-connect greenfield premises and 47k active customers. Conversely, the company is struggling in established areas, losing 22k active brownfield customers in the December quarter alone due to 4G/5G wireless substitution.

Total capital expenditure reached $1.92bn for the half, with $0.80bn specifically earmarked for transitioning the FTTN/C footprint to fibre. These investments enabled 108k full fibre upgrades during the period, though a formal copper exit remains unlikely in the immediate term.

Residential ARPU has stalled at $47 per month, reflecting a ceiling in current pricing structures. Future revenue growth is now contingent on successfully migrating the user base to higher-priced, high-speed tiers following the recent fibre deployments.

nbn HY24 results

Abstract

Key Takeaways

Frequently Asked Questions

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