How Aussie Broadband’s $1.2B Year and Wholesale Deal Could Reshape the Telco Market

Strong Financial Performance and Market Expansion

Aussie Broadband Limited (ASX – ABB) delivered a compelling FY25 performance, reporting revenue growth of 18.7% to $1.2 billion and underlying EBITDA of $138.2 million, hitting the top end of its upgraded guidance. The company added 104,000 new broadband connections, pushing its market share in the fixed broadband NBN segment to 8.4%, nearly doubling since its IPO. This growth was driven by strong demand in the residential segment and significant enterprise and government customer wins.

The company’s strategic investments in its infrastructure, including the expansion of its Aussie Fibre network to nearly 2,000 kilometres and the addition of 896 connected buildings, underpin its ability to serve customers directly with higher-margin fibre connections. Aussie Broadband’s diversification efforts are evident, with voice services now contributing 29% of gross profit, boosted by the full consolidation of Symbio, which grew EBITDA by 35% pro-forma.

Transformative Wholesale Agreement and Platform Innovation

A highlight of FY25 was the signing of an exclusive six-year wholesale services agreement with More Telecom and Tangerine, expected to bring approximately 290,000 connections onto Aussie’s network by the end of FY26. This deal is projected to add $12 million in annualised EBITDA from FY27 and push total broadband connections beyond one million. The migration will be powered by Aussie Broadband’s proprietary Nitrogen wholesale platform, a new technology that streamlines wholesale operations and enhances scalability for partners.

This agreement not only validates Aussie Broadband’s position as an innovative wholesale player but also signals a material uplift in earnings and market presence. The company also completed the sale of the Buddy Telco brand to Tangerine, with those customers remaining on Aussie’s network, further consolidating its wholesale footprint.

Leadership Transition and Strategic Realignment

FY25 marked a significant leadership transition with Brian Maher stepping in as Group CEO, succeeding founder Phil Britt who remains on the board as a Non-Executive Director and Special Advisor. Under Maher’s leadership, Aussie Broadband unveiled its Look-to-28 strategy, aiming for $1.6 billion in revenue by FY28, an NBN market share exceeding 11%, and EBITDA margins above 12.5%. The company restructured its operations into three customer-focused segments – Residential, Business & Enterprise & Government (E&G), and Wholesale, each led by dedicated executives to sharpen focus and drive growth.

Board changes included the appointments of Graeme Barclay and Sarah Adam-Gedge as Non-Executive Directors, bringing extensive telecommunications, financial, and technology expertise. These appointments support the company’s ambitions for digital transformation and governance excellence.

Outlook and Capital Management

Looking ahead, Aussie Broadband projects underlying EBITDA growth of 14-21% for FY26, targeting a range of $157 million to $167 million, with capital expenditure moderated to $55-60 million. The company is optimistic about accelerating growth in residential broadband, enterprise contracts, including new deals with Accor Hotels and Bakers Delight, and wholesale services powered by the Nitrogen platform. The share buyback program remains active until November 2025, reflecting a balanced approach to capital allocation and shareholder returns.

Additionally, Aussie Broadband is advancing its sustainability agenda with the upcoming release of its inaugural Sustainability Report and efforts toward B-Corporation re-certification, underscoring its commitment to responsible corporate growth.