Aussie Broadband (ASX: $ABB) FY24 Trading & FY25 Guidance Update

Aussie Broadband Limited (ASX: $ABB) has announced an update on its FY24 trading and FY25 guidance. The preliminary, unaudited results indicate that the FY24 EBITDA is expected to be at the top end of the upgraded range of $116m to $121m, including Symbio for 4 months to 30 June 2024. The company also provided EBITDA guidance for FY25, with an expected increase of between 12% and 20% from the top of the FY24 guidance range, prior to the impact of Buddy Telco.

Executive Commentary on FY24 Trading & FY25 Guidance

The Group is pleased to announce that the FY24 EBITDA is anticipated to be at the upper end of the upgraded range, reflecting our continued growth and performance. Looking ahead to FY25, the introduction of Buddy Telco is expected to have a positive impact, with the Group providing EBITDA guidance range of $125m to $135m, inclusive of Buddy Telco's impact. We are also focused on investing in Buddy's marketing, brand, and setup, with an estimated positive EBITDA contribution expected from FY27 onwards. The capex guidance for FY25 is set at $55m to $60m, inclusive of capitalised software development costs, reflecting our strategic utilization of excess network capacity following the migration of Origin customers. These ranges are based on our current market conditions, operating plan, and pipeline.

Summary of Aussie Broadband's FY24 Trading & FY25 Guidance Update

Aussie Broadband Limited (ASX: $ABB) anticipates its FY24 EBITDA to be at the top end of the upgraded range, showcasing strong performance. The company has also provided EBITDA guidance for FY25, with an expected increase of between 12% and 20% from the top of the FY24 guidance range, prior to the impact of Buddy Telco. The introduction of Buddy Telco is expected to have a positive impact on FY25, with the Group providing an EBITDA guidance range of $125m to $135m, inclusive of Buddy Telco's impact. The company also aims to invest in Buddy's marketing, brand, and setup, with an estimated positive EBITDA contribution expected from FY27 onwards. Additionally, the capex guidance for FY25 is set at $55m to $60m, inclusive of capitalised software development costs, reflecting strategic utilization of excess network capacity following the migration of Origin customers. The company is set to release its full year audited results on 26 August 2024, and an investor briefing is scheduled for today. Aussie Broadband continues to focus on building market share in various segments while maintaining its commitment to providing a broad range of solutions to its customers.