Aussie Broadband Ltd (ASX: ABB) is an Australian telecommunications and internet service provider known for its strong customer service, high-performance infrastructure, and focus on transparent pricing. The company offers residential, business, and enterprise-grade broadband, mobile, and voice solutions. Over recent years, ABB has evolved from a niche NBN provider into a vertically integrated telco with data centre capabilities, fibre network infrastructure, and growing national market share.
Strategic Update and Market Reaction
At its Investor Day held on 10 April 2025, Aussie Broadband Ltd outlined a comprehensive five-year plan aimed at significantly scaling its revenue base and operational footprint. The company revealed a FY28 revenue target of $1.6 billion or higher, supported by continued growth across residential, business, and enterprise segments.
Central to the strategy is a new wholesale mobile agreement with Optus, which will support Aussie’s mobile virtual network operator (MVNO) platform and enhance pricing flexibility and product bundling for customers. This agreement is expected to strengthen ABB’s mobile competitiveness as it looks to grow mobile subscribers alongside broadband offerings.
The company also reported its strongest net broadband additions in over three years, adding 24,279 new connections in Q3 FY25. This reflects a rebound in customer acquisition and continued execution of its multi-channel sales strategy, including recent improvements to its online and retail distribution.
Importantly, ABB reaffirmed its FY25 EBITDA guidance of $133 million to $138 million, indicating that margin performance and operational efficiency remain on track despite broader telco sector challenges.
The market reacted swiftly, sending ABB shares up 6.83% to $3.91, approaching the upper end of its 52-week range ($2.85 – $4.29). With a PE ratio of 39.49 and a 2.05% dividend yield, ABB trades at a growth-premium multiple, underpinned by rising cash flow visibility and a capital-light expansion model.
The Investor Day presentation helped re-establish ABB’s credibility as a growth-oriented challenger brand with a clear roadmap to FY28 — particularly in enterprise fibre, wholesale mobile, and automation-led service delivery.
Investor Outlook and Sector Positioning
With a market cap of $1.16 billion and growing relevance across both consumer and enterprise telecom segments, Aussie Broadband is positioning itself as a leading mid-cap digital infrastructure provider. Its vertically integrated operating model, including its own fibre network and data centres, has created cost advantages and improved gross margins over time.
The recently signed wholesale mobile agreement with Optus is strategically important, as it offers improved unit economics and strengthens ABB’s competitiveness against Telstra and TPG. The deal will underpin growth in mobile subscribers and enable future bundling strategies that drive ARPU (Average Revenue Per User).
While ABB’s 1-year return of 10.45% reflects steady share price appreciation, the company has underperformed at times due to capex-related concerns and intensifying price competition in NBN services. However, this Investor Day update appears to have shifted sentiment — ABB’s reaffirmed FY25 outlook and long-term revenue ambition provides renewed confidence to the market.
The dividend yield of 2.05%, although modest, is viewed positively given ABB’s growth focus and reinvestment strategy. Investors may also find appeal in ABB’s disciplined use of capital, as it scales fibre assets, enhances automation, and improves customer self-service platforms.
ABB’s current PE of 39.49 suggests the market is still pricing in aggressive growth assumptions. While elevated, this is not unusual for high-quality small-cap telcos that demonstrate both top-line expansion and margin scalability.
As ABB moves toward FY28, its success will hinge on the execution of its key verticals: business fibre, white-label wholesale solutions, and continued innovation in digital service delivery. With today’s investor briefing, management has set the tone for what could be a breakout period for ABB — provided it can deliver on scale and efficiency.