NBN suffers half-year loss despite revenue rise

The news: Broadband provider NBN Co reported a half-year loss of $696 million, suffering higher costs and expenses.

The numbers: NBN posted an EBITDA of $1.985 billion in the six months to December 2023, an increase of $178 million compared to the previous corresponding period. The uplift was due to a 5% rise in revenue and a 6% decline in total operating expenses compared to 1H23.

However, the government-owned telco reported statutory loss after tax of $696 million for the period, sinking $252 million since last year's first half. NBN said the losses were driven by higher net financing costs, increased depreciation and amortisation expense, and a $153 million income tax expense resulting from the movement in deferred tax on NBN's financial derivatives.

The context: Marginal improvements in residential average revenue per user and small growth in active premises connected to the NBN's broadband network drove an increase in telecommunications revenue during the first half.