Insights

The Aussie Broadband (ASX:ABB) share price has gained 40% in 2021

Aussie Broadband’s first 12 months on the ASX are going swimmingly.
The post The Aussie Broadband (ASX:ABB) share price has gained 40% in 2021 appeared first on The Motley Fool Australia. –

The Aussie Broadband Ltd (ASX: ABB) share price has been flourishing on the ASX this year. Shares in the telecommunications company have gained 40.5% since the start of 2021.

At the time of writing, the Aussie Broadband share price is $2.84.

That’s around 50% more than it was at the company’s initial public offering (IPO) in October last year.

Let’s look at what Aussie Broadband has been up to lately.

News driving the Aussie Broadband share price

The first time we heard from Aussie Broadband this year was when it released a trading update in late January.

The company stated it was expecting its earnings before interest, tax, depreciation and amortisation (EBITDA) to be between $6.9 million and $7.4 million for its first financial half-year – meaning it was set to smash its prospectus’ predicted EBITDA of $12.66 million for the full 2021 financial year.

The update saw shares in Aussie Broadband close for 7.6% higher than they did in the previous session.

Then, in mid-February, the company released its results for the half-year ended 31 December.

The period saw Aussie Broadband’s revenue increase by 89% – above its prospectus’ forecast of 84.1%.

Additionally, its EBITDA reached $7.3 million. 

The company’s share price gained 6.6% on the back of its results.

Aussie Broadband released exciting news on 13 April that saw its share price close 4% higher than the previous session.

The company introduced its new white-label solution. The white-label solution will allow large retailers to provide their customers with some of Aussie Broadband’s services through their own brand.

Aussie Broadband expects its white-label solution’s first large retailer to provide it with 25,000 more customers.

The final time we heard from Aussie Broadband was in late May, when it upgraded its full-year guidance and named its first white-label customer.

Aussie Broadband advised it expected to record EBITDA of between $17 million and $20 million for the 2021 financial year, excluding the costs of its IPO. That’s 38% to 62% higher than it previously predicted.

Aussie Broadband also announced its first white label customer will be Origin Energy Ltd (ASX: ORG).

The news saw the Aussie Broadband share price end the day 1.8% higher than its previous session.

The post The Aussie Broadband (ASX:ABB) share price has gained 40% in 2021 appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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