Aussie Broadband Limited (ASX:ABB) Reports Interim Financial Results
Financial Performance
Aussie Broadband generated $588.5 million in revenue for the half-year ended 31 December 2024, marking a 32.0% increase from $445.9 million in the previous period. Net profit after tax rose by 23.8% to $12.2 million. The growth was driven by an increase in broadband subscribers, additional revenue streams, and the acquisition of Symbio Holdings Limited.
Dividends Declaration
On 24 February 2025, the directors declared an interim fully franked dividend of 1.6 cents per ordinary share and a special fully franked dividend of 2.4 cents per ordinary share. Both dividends are scheduled to be paid on 24 March 2025.
Operational Highlights
EBITDA before restructuring and integration costs grew by 42.1% to $65.8 million. Broadband connections increased by 6.4% to 728,000, and NBN market share rose to 7.8%. The gross profit margin improved from 34.6% to 37.0%.
Mergers & Acquisitions
The Group completed the acquisition of Symbio Holdings Limited on 28 February 2024, enhancing its communication services portfolio. Additionally, the remaining 60.1 million shares in Superloop Limited were sold for proceeds of $99.6 million, realizing a profit before tax of $42.4 million.
Liquidity and Capital Overview
Net borrowings decreased to $101.1 million as $120 million of borrowings were repaid during the half-year. Operating cash flow stood at $16.3 million. Capital expenditure increased to $32.6 million, primarily due to investments in Symbio.
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband. The Motley Fool Australia has recommended Aussie Broadband. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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