NBN Co revenue hits $5.5B as net profit loss deepens

NBN Co’s revenue over the 12 months to 30 June has reached $5.5 billion, up 4 per cent year-on-year, while its statutory net profit after tax (NPAT) loss deepened by 5 per cent to $1.18 billion in the red.

This is according to the National Broadband Network (NBN) builder’s financial report for its 2024 financial year, which attributed the revenue increase to increased activations and business revenue, specifically highlighting its business fibre and enterprise Ethernet services.

It also said it saw increased revenue from network construction activity for new developments and co-investment projects.

This is up about $300 million, with NBN Co reporting revenue of $5.2 billion during FY23.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was also up, rising 9 per cent to $3.9 billion.

Both revenue and EBITDA were at the higher end of its FY24 guidance, which the network builder previously mentioned during its half yearly results.

“NBN Co has achieved the key performance targets and full year guidance as set out in the Corporate Plan 2024,” said NBN Co interim CEO Philip Knox.

​Dragging down its profits for the financial year however were depreciation and amortisation expenses, which increased by 4 per cent to $3.2 billion.

Also on the rise were finance costs on lease arrangements, net finance costs on borrowings and income tax expenses, which rose by 5 per cent to $942 million, 18 per cent to $888 million and 950 per cent to $105 million, respectively.

Operating expenses however were down 5 per cent, falling to $1.7 billion due to reduced workforce related costs and ;lower required assurance activity on the network.

NBN Co also restated that the residential average revenue per user (ARPU) was stable at $47 while updating the market on having over 8.6 million homes and businesses connected to its network.

Additionally the network builder said it is on target for having over 10 million premises, or up to 90 per cent of its fixed line network, able to access its Home Ultrafast wholesale speed tier by the end of 2025, with the percentage currently sitting at 78 per cent.

NBN Co also said it has rolled out over 70,000 kilometres of new fibre to extend full fibre access to 3.5 million premises served by Fibre to the Node (FTTN) technology, as well as 1.5 million premises served by Fibre to the Curb (FTTC) technology.

During the financial year, more than 2 million premises in Victoria and NSW combined were made eligible for full fibre upgrades, with approximately 375,000 premises nationwide upgrading from FTTN or FTTC to full fibre.