National broadband network builder NBN Co saw its total revenue rise 10% to $5.1 billion in fiscal 22 ending June 30.
Earnings before interest, taxes, depreciation and amortization (EBITDA), after subscription costs, was $3.1 billion, 130% higher than the $1.35 billion EBITDA achieved in during fiscal year 21.
Statutory Net Profit After Tax (NPAT) improved 62% or nearly $2.4 billion in FY22, reducing statutory loss by $3.8 billion in FY22 FY21 less than $1.5 billion.
NBN Co pointed out that the revenue result was due to approximately 316,000 additional net activations since June 30, 2021 and had 8.5 million residential and commercial premises connected to the network.
In particular, he acknowledged the growing demand for higher speed levels with 76% of customers on retail plans based on wholesale download speed levels of 50 Mbps and above and 18% of residential customers using plans based on wholesale speed tiers offering download speeds of up to 100 Mbps and more.
Average residential revenue per user (ARPU) was flat and unchanged year-to-date at $46, compared to $45 as of June 30, 2021.
For the first time, commercial segment revenue was $1 billion, up 20% year-over-year.
During the year, NBN Co raised an additional $7 billion in bank and capital market debt, including the issuance of an $800 million green bond, and repaid $6.8 billion in additional dollars on the $19.5 billion Commonwealth loan, reducing interest payments and the outstanding balance. at $6.4 billion.
Capital expenditures were $2.5 billion as it continued to invest in network upgrades, expanding to new residential and commercial premises and providing capacity upgrades to meet the growing demand for data.
“Our oversight and financial management of the business allows us to continue to invest in the network to deliver faster speeds and greater capacity across the network for the benefit of all customers,” said Stephen Rue, co-CEO of NBN.
“We have accelerated our private debt raising and capital recycling program over the past three years to take advantage of historically low interest rates, by locking in a series of well-priced medium-term notes. This provides us with a good hedge if interest rates continue to rise in the future.
“However, it is important that we continue to manage our capital and operating costs prudently and generate consistent and predictable revenues so that we can continue to meet customer, industry and government expectations as we we are working to build Australia’s digital capability.
NBN Co’s subscriber payments to Telstra and Optus continued to decline, from $1.2 billion in FY21 to $175 million in FY22. The reduced payments are the result that the company has reached the end of legacy service disconnects.
NBN Co has begun design activity to expand the Fiber Connect upgrade program to an additional 1.5 million premises and has also recently completed upgrades to the Hybrid Fiber Coaxial (HFC) network.
It is also making progress in its fiber-to-the-node (FTTN) and fiber-to-the-curb (FTTC) to fiber-to-the-premises (FTTP) upgrade program.
As of June 30, approximately 230,000 FTTN premises and approximately 380,000 FTTC premises have been able to upgrade to FTTP and access ultra-fast domestic broadband network (NBN) services.
NBN Co also confirmed that it is progressing well with the $750 million investment to significantly improve the capacity of the NBN fixed wireless network.
The investment will extend the coverage, speed and capacity of over 2,200 fixed wireless infrastructure sites and over 22,000 cells in rural, regional and remote areas of Australia.
NBN Co withdrew its previously proposed SAU amendment on July 27, recognizing that an amended SAU should reflect changes in the political landscape and operating environment since the current amendment was filed.
The company has engaged in further consultation with the government and the Australian Competition and Consumer Commission (ACCC) and expects to publish a new discussion paper on the SAU variations later this week.
NBN Co will participate in further consultations, chaired by the ACCC, later this month, which will seek input and feedback from retail service providers and consumer advocacy groups involved in the process. As a result of this consultation, NBN Co expects to submit a revised SAU Amendment Proposal in October 2022.
“We are also committed to working with industry to deliver great results for customers and play our part in creating a new business and regulatory framework,” Rue said.
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