Aussie Broadband has reported robust FY25 results with strong revenue and EBITDA growth, boosted by strategic contracts and operational efficiencies. The company sets an ambitious FY26 EBITDA target amid ongoing market expansion.
- FY25 revenue up 18.7% to $1.19 billion
- Underlying EBITDA grows 14.7% to $138.2 million, hitting top guidance
- NBN market share rises to 8.4%, on-net broadband connections grow 15.2%
- Symbio delivers 35% EBITDA growth, contributing $39.4 million
- New multi-year contracts with Accor, More Telecom, and Tangerine Telecom
Strong Financial Momentum
Aussie Broadband Limited (ASX, ABB) has unveiled a compelling set of full-year results for FY25, underscoring its accelerating growth trajectory in the competitive Australian telecommunications market. The company posted group revenue of $1.187 billion, marking an 18.7% increase over the prior year, while underlying EBITDA climbed 14.7% to $138.2 million, reaching the top end of its upgraded guidance range. These figures reflect the success of Aussie Broadband’s diversified business model and operational improvements.
On-net broadband connections surged by 104,100 to 788,400, a 15.2% rise that contributed to a 1.1 percentage point increase in the company’s NBN market share to 8.4%. This growth was broad-based, with all customer segments, residential, business, enterprise & government, and wholesale, delivering double-digit connection uplifts.
Symbio and Diversification Drive Margin Expansion
Symbio, the company’s managed services arm, was a standout performer, delivering a 35% increase in EBITDA on a pro forma basis to $39.4 million. This contribution not only exceeded expectations but also helped improve the group’s gross margin by 0.6 percentage points to 36.7%. The residential segment, while representing 57% of total revenue, saw a slight decline in its revenue share as the company diversified into higher-margin markets, including enterprise and wholesale.
Operational efficiencies also played a key role, with $11 million saved through cost management initiatives. Aussie Broadband repaid $90 million in borrowings during the year, reducing net leverage to 0.9x and maintaining a strong balance sheet that supports both organic and acquisitive growth strategies.
Strategic Partnerships and Market Positioning
In FY25, Aussie Broadband secured several high-profile enterprise and government contracts, including deals with Cricket Australia, Queensland Police Service, and Maurice Blackburn Lawyers. The company also announced a strategic five-year partnership with Accor to provide voice and high-speed internet services across Accor’s Australian hotel portfolio.
On the wholesale front, Aussie Broadband signed a six-year agreement with More Telecom and Tangerine Telecom, two rapidly growing Australian providers, expected to generate approximately $12 million in annualised EBITDA from FY27. Concurrently, the company agreed to sell its Buddy Telco brand and customer assets to Tangerine, with the Buddy connections remaining on Aussie Broadband’s network under wholesale terms. This transaction is anticipated to complete in the second half of FY26 and is expected to streamline the company’s focus on core operations.
Outlook and Guidance
Looking ahead, Aussie Broadband has provided FY26 underlying EBITDA guidance of $157 million to $167 million, representing growth of 14% to 21% over FY25. This forecast factors in a reduced investment in the Buddy brand and excludes any gain from its disposal. The company remains focused on expanding its customer base, leveraging its owned fibre network, and pursuing strategic acquisitions aligned with its long-term growth ambitions.
CEO Brian Maher highlighted the company’s strong market positioning and technology offerings, expressing confidence in achieving the goals outlined in the recently unveiled Look-To-28 strategy. With over 1.1 million services supported across the group, Aussie Broadband is well placed to capitalize on favourable market dynamics and evolving customer needs.
Bottom Line?
Aussie Broadband’s FY25 results and strategic deals set the stage for sustained growth, but execution on new contracts and integration will be key to maintaining momentum.
Questions in the middle?
- How will the sale of Buddy Telco impact Aussie Broadband’s customer retention and revenue streams?
- What are the risks and opportunities in integrating Symbio’s services more deeply into the core business?
- How will competitive pressures and NBN speed upgrades affect margins and customer growth in FY26?