Aussie Broadband completes AGL Telco deal, reaffirms FY26 guidance

The news: Aussie Broadband has completed its acquisition of AGL Telco after first announcing the deal earlier this year. The transaction is projected to deliver an additional 350,000 NBN services by the second quarter of FY27.

The context: Following the completion, AGL has been issued $115 million in Aussie Broadband shares, representing approximately 22 million fully paid ordinary shares, or 7% of the company’s issued capital.

The acquired telco business is expected to deliver $21 million in underlying EBITDA during the first 12 months post migration. Aussie Broadband expects to achieve its underlying EBITDA guidance of $162 million to $167 million, while capital expenditure is projected at the upper end of its $55 million to $60 million target range.

What they said: “These transactions are central to our upgraded Look-to-28 ambitions, repositioning the company to deliver higher quality and more sustainable earnings streams,” Aussie Broadband group chief executive Brian Maher said.