NBN Co delivers FY22 financial and operational results in line with guidance

NBN Co

FY22 performance summary for the 12 months to 30 June 2022:

  • NBN Co achieves key performance metrics and full year guidance as set out in the Corporate Plan 2022
  • Total revenue of $5.1 billion for FY22, up 10 per cent on FY21
  • Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), after subscriber costs, was $3.1 billion, 130 per cent higher than the $1.35 billion EBITDA achieved in FY21
  • In FY22 NBN Co raised a further $7.0 billion in bank and capital markets debt, including the issuance of an $800 million Green Bond. During FY22 the Company repaid a further $6.8 billion of the $19.5 billion Commonwealth loan, lowering interest payments and reducing the outstanding balance to $6.4 billion
  • 8.5 million residential and business premises connected to the nbn® network, representing approximately 316,000 additional net activations since 30 June 2021.

NBN Co generated total revenue of $5.1 billion in FY22, an increase of 10 per cent year-on-year, and Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of $3.1 billion, which was a 130 per cent improvement on FY21. Both revenue and EBITDA were in line with guidance.

The revenue result was based on the addition of approximately 316,000 residential and business premises to reach a total of more than 8.5 million premises at 30 June 2022.

The company recognised increasing demand for higher speed tiers with 76 per cent of customers on retail plans based on wholesale download speed tiers of 50 Mbps and above1 and 18 per cent of residential customers using plans based on wholesale speed tiers offering download speeds of up to 100 Mbps and above2 at 30 June 2022.

Residential Average Revenue Per User (ARPU) remained stable and unchanged since the half-year at $46, up from $45 at 30 June 2021. Revenue from the business segment amounted to $1.0 billion, up 20 per cent year on year.

NBN Co’s subscriber payments to Telstra and Optus continued to decline, decreasing from $1.2 billion in FY21 to $175 million in FY22. The reduced payments are the result of the company reaching the tail end of disconnections from legacy services.

The Company also reduced its cost of debt after refinancing and repaying a large portion of the government loan, replacing it with bank and capital markets debt at lower average interest rates. As a result, net finance costs reduced by $151 million compared to the prior year.

Capital expenditure in the 12 months to 30 June 2022 was $2.5 billion. The Company continued to invest in upgrades to the nbn network, pushing fibre deeper into communities around Australia, expanding the network to serve new residential and business premises and delivering important capacity upgrades to meet customers’ growing demand for data.

Statutory NPAT improved by 62 per cent or almost $2.4 billion in FY22, reducing the statutory loss from $3.8 billion in FY21 to less than $1.5 billion in FY22.

NBN Co successfully raised more than $7.0 billion in private and capital markets debt during FY22. This included raising $800 million in its first Green Bond issuance, which at the time of issuance was the largest such raising by an Australian company. The new debt facilities have enabled the company to repay a further $6.8 billion of the $19.5 Commonwealth loan, reducing the outstanding balance to $6.4 billion.

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