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NBN Co FY 23 Results - Key Takeaways

 NBN Co FY 23 Results - Key Takeaways 

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  • NBN Co’s Revenue has increased by 4% in FY23 and is facing headwinds for increasing the revenue. 
  • CAGR stands at 8.7%. WACC - 3.18% (heading upwards)
  • Has the highest EBITDA margin (68.2%) among telcos globally.
  • Consumer uptake is at a snail's pace with only 40K net additions in the last 12 months. 
  • 12.3 Mn customers ready to connect 
    • 8.56 Mn are active (30% idle network)
    • 6.64 Mn (78.2%) users are on <= 50 Mbps
    • 2 Mn (24.2%) users < 50 Mbps, 4.52 Mn users on 50 Mbps
    • 1.83 Mn (20.7%) users are on >= 100 Mbps (risen by 2%)
  • 6.6 Mn premises ready for Ultrafast (incl 2.5 Mn on HFC)
    • Poor uptake – only 50-60K has upgraded
    • In all 1.83 Mn users are using Ultrafast (>=100 Mbps) internet.
  • Facing heat from Starlink and 5G providers in remote areas
    • Starlink In Australia > 120K subscribers
    • Sky Muster has declined from 108K to 96.1K
  • In the Enterprise 35K EE SIOs are active. 
  • It seeks to improve its top and bottom line by implementing price increases through the SAU. The next revision is to be submitted soon.
  • Today ARPU is $47 (Residential, stagnant), and FY24 ARPU is $49 (sub-SAU approval)
  • Heading for profit (NPAT) without a soft write-off of $32 Bn in H1 FY25. With the write-off, it could be Profitable in FY 24. 
  • NBN’s Enterprise Value has risen from $25 - $19 Bn to $36 - $29 Bn and will be heading northward of $40 Bn if SAU with a price increase is accepted in FY24. A good prospect for the government as it prepares to offload its investment after FY25.  
  • The total cost of ownership TCO of NBN in 2023 using ICRA is A$76Bn+ and without ICRA consideration it is >A$59.9BN

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NBN Co's Total Cost of Ownership (TCO) from 2010 to 2023





























  • NBN was established to reduce the digital gap in Australia by making high-speed internet (>100 Mbps) affordable and removing Telstra's monopoly in fixed-line access. While NBN has succeeded in removing Telstra's monopoly, but it's disheartening to see that they have failed to reduce digital exclusion by providing affordable high-speed internet.
  • After investing A$76Bn over 14 years, Australia's average fixed internet speed ranks 81st globally at 53 Mbps, lagging behind many other countries in terms of internet connectivity.
  • 75% of Australians are consuming the internet at a speed of 50Mbps or less.



Source NBN Co, AFR, Reuters, ACCC
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