Aussie Broadband declares first dividend, co-founder retires
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The news: Shares in Aussie Broadband surged in morning trade after the Victoria-based telco declared its first-ever dividend on the back of double-digit profit and earnings growth in the 2024 financial year.
The numbers: Aussie Broadband shares were up 12.5% to $3.51 by 12:20pm AEST.
The telco reported net profit after tax of $26.4 million, up 21.7% compared to the previous year. Revenue grew 26.9% year on year to $999.7 million while underlying EBITDA rose 34.5% to $120.5 million.
The broadband provider, which declared its first ever dividend of 4 cents per share, saw its market share of NBN connections grow from 6.6% to 7.4% during FY24, while total broadband connections rose 14% year on year.
Aussie Broadband, which assumed full ownership of communications software company Symbio in February, said the $258 million acquisition delivered a $12 million EBITDA contribution for the four months of ownership to June, achieving the top end of the pre-acquisition guidance.
The group reaffirmed FY25 EBITDA guidance in the range of $125 million and $135 million. It is also targeting earnings growth of 13% to 21% across all business segments.
The context: Aussie Broadband also announced that its co-founder and chief technology officer John Reisinger will retire on 31 October, and be replaced by current chief infrastructure engineering officer Brad Parker.
Meanwhile, Andy Giles Knopp, who joined the company as interim chief financial officer, has been appointed as group CFO.
What they said: On the departure of Reisinger, co-founder and group managing director Phillip Britt said: "From a start up that began in our lounge room, to listing on the ASX in 2020, to a billion-dollar revenue business with 1,800 employees today, he has been a steadfast business partner and friend who has helped drive Aussie's success".
On the full-year result, he said: "The acquisition of Symbio is proving to be a hugely positive investment, boosting revenue streams and strengthening the group's financial profile".
"With a health balance sheet, we are in an enviable position to make strategic investment decisions — whether that is in our own assets and infrastructure, on mergers and acquisitions, or providing a return to shareholders," he said.
The sources: ASX announcement, ASX announcement, ASX announcement
