NBN Co has posted a 39 per cent increase in total revenue to $1.81 billion in the six months to 31 December 2019, following strong momentum in total activations and continued residential and business revenue growth.
More than 667,000 premises were declared Ready to Connect to the nbn™ access network during the first half of FY20, lifting the total number of homes and businesses able to order a service to 10.5 million and signifying that the national broadband network volume build is more than 90 per cent complete2.
Activations were another highlight with more than 907,000 residential and business premises activated in the first half of FY20, lifting total activations to 6.44 million at 31 December 2019.
Strong demand from new and existing customers upgrading to higher wholesale speed tiers generated Residential Average Revenue Per User (ARPU) of $45, up from $43 in HY19. At 31 December 2019, 67 per cent of residential and business customers were on wholesale speed tiers of 50 Mbps1 and above, up from 56 per cent in HY19.
NBN Co continued to make strong inroads in the business segment. Business revenue increased to $319 million in the first half of FY20, up from $214 million in the previous corresponding period.
The Company’s earnings performance continued to improve with Statutory Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), before subscriber costs, increasing to $775 million.
Capital expenditure during the first half of FY20 was $2.5 billion, down from $2.9 billion in HY19, which reflects network rollout volumes as the Company approaches the final stages of the volume build, as specified in the Corporate Plan 2020-23.
NBN Co CEO Stephen Rue said: “These are outstanding results executed during a crucial time of the build. We continued to deliver against our key financial and business metrics, and we remain well positioned to complete the volume rollout of the network by 30 June 20202.
“The progress of the rollout during the half was particularly pleasing, given we are now at the most challenging stage of the build, which takes in more complex sites. In the six months to 31 December 2019, we undertook one of the biggest ever phases of deployment and activations of residential and business premises on the network, with more than 907,000 premises activated and more than 667,000 premises declared ready to connect.
“We expect the urban rollout activity to further accelerate in the second half, particularly across our Fibre to the Curb (FTTC) deployment. We are very pleased to say that the nbn is now available in most areas of Australia, and customers continue to sign up to nbn services at a rapid rate.
“This strong momentum in the rollout puts us well on track to deliver on our commitment of making 11.5 million residential and business premises Ready to Connect and seven million premises connected to the network by 30 June 2020.
“Our earnings position continued to strengthen, with statutory EBITDA, before subscriber costs, increasing to $775 million. It’s important for NBN Co to generate reasonable earnings to allow reinvestment in the network, while also meeting our borrowing obligations and to generate a modest return on the Australian taxpayers’ investment.”