Aussie Broadband Ltd. · ASX:ABB
Aussie Broadband — 1H FY22 Earnings Presentation
27 slides from Aussie Broadband's earnings presentation, Feb 21, 2022
Slide 1: 1H FY22 Results Presentation
1H FY22 Results Presentation 21 February 2022
Slide 2: Company highlights
Company highlights 1H FY22 New office & call centre in Burswood WA, opened July 2021. 2.
Slide 3: Highlights
Highlights $229.3m $9.1m 494,803 Revenue EBITDA before Total transaction broadband 46% costs services ($157.4m 1H FY21) 7% 45% ($8.5m 1H FY21) (342,297 as at 31 December 2020) 5.66% 32,207 45,483 NBN broadband Mobile services Business market share broadband (excluding satellite), 70% services (18,97
Slide 4: Highlights
Highlights First round of white ASEA label migrations complete award winner Successful 8,725 services migrated Customer Service capital raise in 1H FY22, remainder of Organisation of the services will be migrated $134m (less costs) year – Large 2020 & 2021 in 3Q FY22 8.2/10 Customer 63 NBN POIs & 29
Slide 5: Operational performance
Operational performance Wer Aussie = Broadband
Slide 6: Broadband services
Broadband services Consistent growth in residential & business, Residential broadband strong growth in wholesale & white label 450,000 • 5.66% NBN Broadband market share (excluding satellite technology, 400,000 up from 4.23% at December 20). 350,000 • 58,579 net additions in residential broadband fo
Slide 7: Mobile services
Mobile services Mobile services Delivered consistent half on half 35,000 growth whilst migrating existing mobile 30,000 customers to the Optus network 25,000 • Completed migration to the Optus network in 1H FY22 with the majority of existing customers retained. 20,000 • Online signup for mobile serv
Slide 8: Voice & Fetch services
Voice & Fetch services Voice growth has been steady Voice services during the half 100,000 90,000 • 8,222 net voice additions 1H FY22 split evenly between the quarters. 80,000 • Stronger voice growth in the business segment as more customers take 70,000 up hosted phone system solutions. 60,000 • See
Slide 9: Marketing & promotions
Marketing & promotions Maintained marketing spend with increased use of promotions to drive broadband growth, mobile retention • Marketing expense for 1H FY22 was $16.4m, down $0.2m compared Cost of Acquisition 2H FY21 ($16.6m), and up $6.7m (69%) compared to 1H FY21. (rolling 3 months) • Promotiona
Slide 10: Customer & team
Customer & team 4.5/5 from 6314 reviews on 4.3/5 from 2719 reviews on 4.8/5 from 2046 reviews on 10.
Slide 11: ESG
ESG • Aussie Broadband is on track to become a Certified B Corporation, as part of our goal to benchmark ourselves and improve in ESG (environmental, social, governance) practice. • We selected B-Corp as our preferred platform because of its fit with our preference for simplicity and transparency. •
Slide 12: Financial Results 1H FY22
Financial Results 1H FY22
Slide 13: Financial performance
Financial performance 1H FY22 1H FY21 Movement $m $m Gross Revenue 237.3 159.9 49% Promotion Discounts (8.0) (2.5) 222% Reported Revenue 229.3 157.4 46% Network and hardware expenses (167.4) (115.4) 45% • Revenue growth driven by organic volume Gross Margin 61.9 42.0 47% growth enhanced by new white
Slide 14: Financial position
Financial position Dec-21 Jun-21 Movement $m $m Cash and cash equivalents 168.2 57.0 195% Trade and other receivables 23.3 16.9 38% Other current assets 8.1 7.6 7% Property, Plant and Equipment 40.4 17.4 132% • Cash boosted by Share Placement Right of use assets 31.2 12.3 154% and Share Purchase Pla
Slide 15: Cash flow
Cash flow 1H FY22 1H FY21 Movement $m $m Receipts from customers 249.1 171.5 45% Payments to supplier and employees (237.8) (162.5) 46% Net interest payments - (0.2) (100%) Operating cash flows 11.3 8.8 28% • Customer receipts and supplier / employee Payment for PPE (24.8) (8.1) 208% payments broadl
Slide 16: Historical financial performance
Historical financial performance Revenue Growth EBITDA 250.0 12.0 10.0 200.0 8.0 150.0 $ millions 6.0 $ millions 100.0 4.0 50.0 2.0 0.0 0.0 2H FY20 1H FY21 2H FY21 1H FY22 2H FY21 1H FY22 2H FY20 1H FY21 Residential Revenue Business Revenue Wholesale Revenue Hardware Revenue -2.0 • Residential reven
Slide 17: Looking ahead
Looking ahead Wer Aussie = Broadband
Slide 18: Completing the fibre build
Completing the fibre build We will complete the fibre build this financial year • 63 sites were complete at 31 December 2021. • 75 sites are now complete. • 21 additional sites are expected to complete by 30 March 2022 and the remaining 16 sites by 30 June 2022. • 31 POIs have been transferred over
Slide 19: The acquisition of Over the Wire
“ The acquisition of Over the Wire if completed will add significant product and skill capability, and will accelerate growth in our business and wholesale segments” Phillip Britt, Managing Director 19.
Slide 20: About Over The Wire
About Over The Wire High margin telecommunications and IT solutions provider offering voice, data networks and cloud infrastructure with contracted revenue. Overview Founded in 2005, Over the Wire is a technology company and integrated platform provider, establishing the telco of the future. With of
Slide 21: About Over The Wire
About Over The Wire A full end-to-end solutions offering focused on medium business, enterprise, government and wholesale customers. Telco of the Future OTW’s goal is to be the integrated platform underpinning the digital transformations of Australian and New Zealand businesses. OTW are challenging
Slide 22: Strategic rationale
Strategic rationale Acceleration of business-focused capabilities by leveraging each others’ key strengths, technologies and solutions. • No direct connection to any NBN POIs. • Direct connection to all 121 NBN Points of Interconnect (POIs). • 99% third party leased fibre network. Data & Networks •
Slide 23: Strategic rationale
Strategic rationale Highly compatible customer base and network which will enable synergies to be unlocked quickly. • Over 410,000 residential and 28,000 business, • Over 16,000 business, government & wholesale customers. Customers MSP & government customers. • Over 700,000 active numbers on the Net
Slide 24: Go to market strategy
Go to market strategy Multiple customer segments and solutions. Residential Business • Focused on the premium end of the residential market • Focused on small and medium single-site businesses (covers 50% of the market). (approx. 2.3 million nationally). • Comprehensive offering including NBN & Opti
Slide 25: 2H FY22 outlook
2H FY22 outlook Achieving continued growth EBITDA guidance • Record January for broadband sales. • The company expects full year EBITDA (before transaction costs and excluding any contribution from OTW) to be in the range of $27m to • February broadband sales are stronger than January on a sales $30
Slide 26: 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 27: Authorised for release by the Aussie Broadband Board.
Authorised for release by the Aussie Broadband Board. For media enquiries please contact Katrina Salhioui on 0448 110 962 For registry queries please contact Link Market Services on 1300 554 474 For other enquiries please email investors@team.aussiebroadband.com.au