Forum Topics ABB ABB MD interview

Pinned straw:

Added 11 months ago

Phil Britt (Managing Director) was interviewed recently on Ausbiz. Link here for those interested -- ABB interview starts around 19:30.

Key highlights:

  • Britt had some time off, three months off long service leave. Britt admitted prior to going on this leave he was 'probably nearly done at that point' but he has come back with a renewed vigour. Britt can still see plenty of opportunities for Aussie to grow and innovate and he wants to be a part of this. Thinks he will be around for the next few years (minimum). If they keep doing 'cool things' he will be there for a lot longer.
  • ***on a side note, this is great to hear. My thesis is busted without Britt at the helm.
  • Some discussion around the recent Symbio acquisition -- focus on business and enterprise, and particularly wholesale. Symbio is 'all about voice' according to Britt. @mikebrisy he also touches on Asia which we previously queried (22:20) - they think there is some opportunity there but will take a wait and see approach. Doesn't sound like they will be rushing into things which is good.
  • Symbio will run as a separate business. The OTW co-founder, who is still at Aussie (I didn't know this, this is impressive if you ask me) will head over and run the Symbio side of the house.
  • Further M&A opportunities. Voice now taken care of with Symbio. Further opportunities across bolt on customer bases, bolt on residential/revenue opportunities, or complementary businesses for the E&G space (particularly in the consulting realm). They won't rush into acquisitions, not an issue due to ongoing organic growth.
  • Capex spend -- FY23 around 47-52m, this will be similar to FY24. On a % of revenue basis, this will obviously reduce over time as revenue continues to improve.
  • The risk of cyber breaches, ABB do a lot to safeguard against cyber attacks. Britt admits he is a tech nerd and he has a good understanding of where their gaps are and where they need to improve. The beauty of your MD coming from a tech background.
  • First priority for the new year -- starting a tech transformation journey for a lot of their systems -- perfect time to do this with new acquisitions coming on board.
mikebrisy
Added 11 months ago

@Rocket6 thanks for sharing! I’d missed it.

I wondered about his time off; didn’t appreciate it was quite so existential. While he is part of the thesis, I think it is incumbent on the Board to help investors know more about the management team and potential internal successors. A good business with a strong culture should stand independent of the CEO, but there has to be a good bench.

I’m relieved about the stance on international. That seems right, and so it comes off my worry list.

I’m still sitting on a Val of $4.50. The last result was stronger on resi than my model and weaker on the rest, which $SYM strengthens. I haven’t digested $SYM in my model and, in truth, it will take 1-2 years of results before we can tell (which is why I generally don’t like material M&A).

$ABB has surprised me. I don’t generally like internet/telecom for reasons articulated previously. I initiated when it was grossly undervalued after $OTW, and continue to hold. But the more I’ve got to know Phil and $ABB, the more I like it. Even so, for me, it’s probably more likely a medium term hold than a long term one. I didn’t take the opportunity to add more in RL recently, as I am happy with my current weight.

A moment of truth for them is that I am in the process of converting my broadband from $TLS to $ABB. From site-specific reasons, it’s not a straightforward gig, so I’m getting plenty of opportunity to see just how good their customer service actually is!

Disc. Held in RL and SM

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