Aussie Broadband Clears 1.3 Million Connections as FY27 Starts Strong

FY27 Guidance Holds as Connections Reach 1.3 Million

Aussie Broadband Limited (ASX:ABB) has reaffirmed its FY27 underlying EBITDA guidance of $205 million to $215 million as broadband connections across the group passed 1.3 million. The update, delivered at the company’s annual general meeting, also retained capital expenditure guidance of $60 million to $65 million.

The connection total stood at 1,304,750 as at 20 October, after more than 193,000 services were added during FY27 to date. That increase includes customer migrations, so the more revealing figure is organic growth excluding AGL, More and Tangerine: 18,800 connections, including 11,000 in residential.

FY26 Earnings and Cash Flow Accelerate

The update puts a stronger finish on a year already marked by substantial earnings growth. Revenue increased 9.2% to almost A$1.3 billion, while underlying EBITDA rose 19.6% to A$165.3 million and underlying earnings per share increased 25.8% to 23.9 cents. Operating cash flow before interest and tax climbed 42.5%.

Those figures were achieved before the full financial contribution from the company’s recent portfolio moves. The strategic transactions included AGL Telco, Nexgen and the More and Tangerine migration, with the FY26 results previously showing the scale of the expansion. The board also increased fully franked ordinary dividends by 50% to 6 cents per share and announced an on-market buyback of up to A$115 million; management said 11.7 million shares, or 37% of the total buyback, had been purchased to date.

Migration Work Gives Way to Integration

More and Tangerine’s migration has been completed, adding 269,000 broadband services to the wholesale segment. Aussie Broadband said the short-term volume effects previously flagged had been mitigated, with modest volume growth recorded in October to date and further growth expected.

The AGL Telco migration is also nearing its finish line, with completion expected by the end of October and approximately 320,000 broadband and mobile connections expected to be transferred. The arrangement gives AGL a continuing branded sales channel while Aussie Broadband supplies the network and customer experience. The company has set a five-year ambition of 500,000 connections through the relationship, but explicitly described its wider Look-to-28 ambitions as ambitions rather than guidance.

The next test is less glamorous than the acquisition headlines: whether the enlarged base can deliver the operating leverage management expects. Aussie Broadband says FY27 is focused on completing migrations, embedding new teams and operations, improving productivity and realising transaction benefits, with FY28 expected to show more of the scale benefits in earnings. The company’s NBN market share reached 12.1% at 30 June, up from 4% when it listed in 2020, while mobile services grew 22% during FY26.