NBN Co Announces Earnings and Revenue for FY24
Revenue Growth Continues Despite First-Half Loss
Summary:
NBN Co, the Australian broadband provider, reported a revenue increase of 3% to $5.27 billion for the 2024 financial year. However, the company also experienced a significant loss of $696 million in the first half of FY24, deepening the deficit from the same period last year.
Details:
Over the 12 months ending June 30, NBN Co's revenue reached $5.5 billion, a 4% increase from the previous year. This follows a 10% growth in revenue in FY22 and a 3% increase in FY23.
Despite the positive revenue trend, NBN Co's earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased by 3% to $3.6 billion. The company attributed this to ongoing network investments and operating expenses.
NBN Co also noted that it raised $65 billion in debt capital and bank facilities in FY24. The company's subscriber costs (excluding GST) grew by 4% to $4.3 billion, while government grants contributed $1.1 billion to its revenue.
The first-half loss of $696 million was primarily driven by increased operating expenses and non-cash impairments. NBN Co stated that it is working to improve operational efficiency and reduce costs to address the financial challenges.
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