Communication Services
Aussie Broadband Limited (ABB)
Aussie Broadband is an Australian telecommunications company providing NBN internet, mobile, and voice-over-IP (VoIP) services to residential and business customers. Operating nationally, the company has built a strong reputation based on its high-quality network performance and award-winning, locally-based customer support. It is also expanding its own fibre infrastructure network to service the higher-margin business, enterprise, and wholesale markets.
Market Cap
A$1.3B
Shares on Issue
N/A
Price Chart
AI Analysis
Aussie Broadband has successfully positioned itself as a high-growth challenger to the major Australian telcos, rapidly gaining market share since its 2020 listing. Its performance is measured by strong growth in broadband and mobile subscribers, with a key focus on maintaining high Average Revenue Per User (ARPU) and customer satisfaction. The strategic acquisition of Over the Wire (OTW) significantly scaled its enterprise and government division, though the company faces ongoing margin pressure from the NBN's wholesale pricing structure (SAU).
The company's growth outlook is tied to three key pillars: continued market share acquisition in the residential segment, aggressive expansion into the business and enterprise markets, and the strategic rollout of its own fibre network. This fibre build aims to reduce reliance on NBN wholesale, improve long-term margins, and provide a competitive advantage. Future catalysts include success in winning large enterprise contracts, achieving scale efficiencies, and potential for further industry consolidation, as demonstrated by its recent (unsuccessful) bid for Superloop.
Bull Case
- • Continued market share gains in the residential broadband market driven by a superior customer service reputation and strong brand loyalty.
- • Successful expansion into the higher-margin business, enterprise, and government segments, leveraging the Over the Wire acquisition to scale and win larger contracts.
- • Margin expansion and reduced wholesale costs achieved through the successful rollout and customer uptake of its own proprietary fibre network.
Bear Case
- • Intensifying competition from larger incumbents (Telstra, TPG) and other challengers, leading to price wars that erode margins and slow subscriber growth.
- • Adverse regulatory outcomes or changes to NBN's wholesale pricing framework that increase input costs and squeeze profitability.
- • Execution risk and higher-than-expected capital expenditure on the national fibre rollout, potentially delaying the return on investment and straining the balance sheet.
Recent Announcements
Appointment of Chief Financial Officer
FY26 Half Year Results Release Date and Investor Briefing
FAQs
What does ABB do?
Aussie Broadband is an Australian telecommunications provider offering NBN internet, mobile plans, and VoIP phone solutions to residential customers. It also has a rapidly growing business and enterprise division that provides high-speed fibre access, cloud, security, and voice services.
Is ABB a good investment?
Aussie Broadband is considered a high-growth, speculative investment. The potential upside is driven by its ability to continue taking market share and expand its own high-margin fibre network. However, risks include intense industry competition, regulatory changes to NBN pricing, and the significant capital required for its infrastructure plans.
What drives ABB's share price?
ABB's share price is primarily driven by its subscriber growth rate, its ability to increase Average Revenue Per User (ARPU), and improvements in its EBITDA margin. Market sentiment is also heavily influenced by M&A activity, NBN wholesale pricing announcements, and progress reports on its fibre network rollout.
Key Metrics
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