Aussie Broadband shares surge as FY25 revenue and earnings top estimates
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More news: Aussie Broadband shares rocketed today after the telco reported a double-digit rise in full-year net profit and agreed two deals with Tangerine Telecom, including the $8 million sale of its Buddy Telco brand.
Shares were up 17.9% to $5.26 at 1:50pm AEST, taking 12-month gains to 68.6%.
Citi analyst William Park said the FY25 result was encouraging, particularly considering price changes and widespread promotional activity across the industry. He noted that Aussie Broadband's revenue and earnings were ahead of expectations and FY26 guidance illustrates the "continued growth trajectory" for the company.
What they said: "While we are surprised by the sale of Buddy Telco, we consider this to be sound especially given [Aussie Broadband] has been able to lock in a 6-year wholesale agreement with the acquirer," Park said.
Aussie Broadband revenue soars past $1b, sells Buddy Telco
The news: Victoria-based telco Aussie Broadband grew its full-year net profit by 24.5% to $32.8 million in fiscal 2025, and delivered underlying earnings at the top end of its upgraded guidance.
The company also secured a six-year agreement to provide NBN network services to More Telecom and its jointly operated business Tangerine Telecom, expected to add $12 million in annualised underlying earnings from FY27.
In a separate transaction, Aussie Broadband has agreed to sell its Buddy Telco brand and customer assets to Tangerine for an estimated $8 million. Aussie Broadband announced the launch of Buddy in July 2024.
The numbers: Revenue for the year soared past 10 figures, up 18.7% to $1.18 billion.
Operating cash flow fell 8.5% to $117 million.
Aussie Broadband's biggest expense, network and hardware costs, rose 17% to $752 million. It also outlayed $200 million in employee expenses across its 1,737 staff.
Earnings per share hit 11.19 cents, up from 9.74 cents during the 2024 financial year.
What they said: "In FY25, we continued to grow our customer base and earnings while positioning the company for long-term success," said CEO Brian Maher.
"We continued to invest in our owned Aussie Fibre network, with a focus on winning customers in on-net and near-net buildings within our existing footprint, which will increase utilisation and improve return on invested capital."
