Aussie Broadband FY24 Results:

Investor Presentation

Results Announcement

Annual Report

Hi Folks,

I've just dropped off the call. Generally positive results. I'll spend a bit more time later delving into the details and share more insight but here are some tid-bits that came up in the call or are noteworthy from documentation:

• 4c fully franked dividend - first dividend payout.
• When asked about cannibalization risk for Buddy (currently 2192 customers), the feedback was that their focus on Buddy is to provide a safety net for customers that would ordinarily transition to a competitor. They mentioned that there was an initial transition spike of Aussie customers to Buddy. They characterized the population doing this as tech savvy people who have no need for human customer service. They were bullish on a 100k subscriber count over 3 years.
• They are looking to continue to be aggressive with their Fiber build, focusing on where there's not enough fiber close to hot-spots of service. At the same time they're taking calculated risks on enabling future service hotspots, the phrase ' if you build it, they will come ' .
• They indicated that of the $12m of Opex associated with the soon to be deprecated Origin deal, that $4m will be cut in 2025 and the remaining $8m will be assessed for 2026. They indicated that most of this is people cost. There's little opportunity to transition to Buddy because the Buddy model relies on automation. They said that they will spend the 12 months figuring out how to redeploy people to retail and wholesale etc..
• They mentioned that with big wins for Bunnings and Lora Jane, they attended the sales rallies of those companies and the feedback was that whilst commercials were important, so to were Aussie's ease of doing business, flexibility and innovation in thinking that helped them beat the big-4 incumbents.

Short term market sentiment loves it with a 40c rise.

More to come.

Held IRL and here.