Aussie Broadband Ltd. · ASX:ABB
Aussie Broadband — H1 FY2021 Earnings Presentation
21 slides from Aussie Broadband's earnings presentation, Feb 17, 2021
Slide 1: First Half FY2021 Results presentation
First Half FY2021 Results presentation
Slide 2: Disclaimer
Disclaimer Not an offer Future Performance The material contained in this presentation is for information purposes only and is intended to be general Forward-looking statements are statements about matters that are not historical facts. Forward-looking background information on Aussie Broadband Limi
Slide 3: Agenda
Agenda First half 1 result Looking 2 ahead 3 Questions Hauling 720 core optic fibre through the Sydney Harbour Tunnel.
Slide 4: Summary
Summary Strong Financial Growth • Revenue up 89% to $157.4m ($83.4m 1H20) • EBITDA up 87% to $7.3m ($3.9m 1H20) Strong organic connection growth • Residential broadband up 30% to 313,193 services and Business broadband up 49% to 29,441 services since June 2020 Continued strong • Total broadband serv
Slide 5: Broadband services
Broadband services Taking market share in a Residential broadband highly competitive market 350,000 300,000 • Broadband market share (excluding satellite technology) 4.2% (up from 2.8% at December 19) 250,000 • The nbn network roll out is largely complete. 200,000 Currently 70% of sales are from cus
Slide 6: Complementary services
Complementary services 70,000 60,000 Single line VoIP growth is stronger due to increased business customer signups. 50,000 Mobile growth is improving due to 40,000 more competitive plan offerings and increased sales focus. 30,000 Expecting further mobile growth from Q4FY21 with new MVNO agreement 2
Slide 7: Fibre network
Fibre network Victoria New South Wales Western Australia • 6 data centres and 7 nbn POIs connected • Connections to 6 data centres and 6 nbn POIs • Connections to 2 data centres and 4 at an advanced stage of construction - due to nbn POIs under construction. • 68km of fibre completed for this segmen
Slide 8: Carbon platform
• Have signed over 300 MSP partners on to the Carbon platform. • Carbon is now billing in excess of $275,000 per month and is growing rapidly. • Have recently launched Hosted PBX on to Carbon allowing MSPs to deliver business voice services to their clients. 8. 8.
Slide 9: Investing in customer growth
Investing in customer growth Lower cost to acquire Strong business growth • Lower than forecast cost to acquire achieved in 1H21 • New business campaigns have generated strong sales growth and raised brand awareness in the business segment • Overall marketing spend was $9.7m, 16% under budget whilst
Slide 10: Building our brand
Building our brand Continuing to build brand awareness • Increased use of above-the-line channels such as TV and billboards has built higher brand awareness. • This strategy has supported further scaling of our direct mail and digital campaigns. • Prompted brand awareness increased from 33% in May 2
Slide 11: Customer experience
Customer experience • Customer satisfaction remained high even through price rise period of September to December 4.6 from 5523 reviews on • Winner Customer Service Organisation of the Year, Large Business – Australian Service Excellence Awards vice excellen ser c n ea lia austra war ds 4.3 from 278
Slide 12: Financial results
Financial results Revenue EBITDA adjusted for IPO expenses 170 9 $ Millions $ Millions 8 150 7 130 6 5 110 4 90 3 2 70 1 50 - 1H20 2H20 1H21 1H20 2H20 1H21 (1) Revenue up 89% to $157.4m due to: EBITDA adjusted for IPO expenses • 81,273 net broadband additions in 1H21 up 115% to $8.4m due to: • Growt
Slide 13: Financial performance
Financial performance Profit and Loss $’m H1FY21 H1 FY20 Change % Revenue 157.4 83.4 89% Network and hardware expenses (115.4) (64.5) -79% • Revenue growth driven by ongoing volume growth Gross margin 42.0 18.9 122% • Gross margin benefitting from static CVC charges for Gross margin % 26.7% 22.7% -
Slide 14: Financial position
Financial position Balance Sheet $’m Dec-20 Jun-20 Change Cash and cash equivalents 50.4 21.4 29.0 Trade and other receivables 16.5 11.4 5.1 • Cash boosted by IPO proceeds Other current assets 5.1 4.2 0.8 • Slight increase in debtor days with extended credit Property, Plant and Equipment 12.4 5.4 7.
Slide 15: Cash flow
Cash flow Cash flow statement $’m H1FY21 H1 FY20 Change Receipts from customers 171.5 90.4 90% Payments to suppliers & employees (162.5) (88.5) -84% Net interest payments (0.2) (0.3) 23% • Customer receipts and supplier/employee payments movements broadly consistent with financial performance Operat
Slide 16: Looking ahead
Looking ahead 16.
Slide 17: Continued growth
Continued growth Residential • Marketing spend will be accelerated for the remainder of the year to take advantage of opportunities as they present • Additional focus on bundling with new campaigns to target existing customers towards multiple products • Using nbn focus on fast campaign to further t
Slide 18: Relaunch of mobiles
Relaunch of mobiles MVNO agreement signed with Optus Wholesale • Will replace existing MVNO (mobile virtual network operator) agreement for access to the Telstra mobile network • Will transition our existing 19,000 mobile customers on to the Optus network • Flexible agreement with the ability for Au
Slide 19: Refreshed marketing
Refreshed marketing Switch to freakin’ fast internet For a bloody good price. 5000+ 5 star reviews h Freakin' fast internet backed by Save up to our 100% Australian based team. Home Fast Typical evening speed 99Mbps Home Superfast Typical evening speed 248Mbps $180 on freakin' $89 /month $99 /month
Slide 20: Guidance
Guidance As noted by the Reserve Bank of Australia recently, a high degree of uncertainty continues to surround Australia’s economic outlook. The potential exists for further COVID-19 geographic lockdowns as outbreaks occur, with associated bandwidth usage impacting the company’s CVC and network cos
Slide 21: Thank you
Thank you investors@aussiebb.com.au