NBN Co’s half-year revenue hits $2.5 billion as costs fall sharply – Telco
NBN Co reported revenue of $2.5 billion for the first half of fiscal 2022 as its subscription and operating costs saw significant reductions for the period.
In the six months ended Dec. 31, 2021, the network provider’s revenue grew 12% year-over-year from $2.26 billion to $2.5 billion, while its losses fell by $2.1 billion to $857 million.
Subscription costs saw an 84% reduction over the period, from $809 million to $126 million, citing fewer customer disconnects and migrations from legacy Telstra and Optus connections. Operating expenses meanwhile fell 11% due, largely due to the reduction in its workforce following the completion of initial construction in 2020.
Business customer revenue increased to $493 million in the six-month period, up 24% from $397 million year-over-year.
Average residential revenue per user (ARPU) increased to $46 from $45 due to increased demand for higher speed plans.
“NBN Co is delivering on its promise to customers and achieving the company’s goal of increasing Australia’s digital capability,” said Stephen Rue, Managing Director of NBN Co.
“We have built a strong, resilient, secure and stable network that has proven itself, particularly over the past two years, as customers in metropolitan, regional and remote areas of Australia have relied on the network to work and study from home, gain access to vital services such as telehealth appointments, shop, connect with friends and family, and be entertained.
Rue added that NBN Co is also on track to deliver full-year 2022 financial results in line with guidance.
The network provider also revealed its plan to upgrade some fiber-to-premises connections, its $4.5 billion network investment plan, is “making good progress” and is expected to activate the first premises. from the end of March 2022.
NBN Co added that its investment in its Hybrid Fiber Coaxial (HFC) network is “progressing well”, with all premises equipped with the technology now able to access its Home Superfast wholesale speed level (up to 250 Mbps ) and 95% with access to Home Ultra-fast wholesale speed level (up to 1 gigabit).
Earlier this week, NBN Co announced a new round of discounts for certain customers on its 12 Mbps wholesale speed tier to help upgrade to the 25 Mbps tier, as it continues to push the latter as its new speed. minimal. Rebates will apply over a six-month period and range from $8 per month for the 25 Mbps tier and $10 per month for those upgrading to the 50 Mbps tier.