Insights

The Aussie Broadband (ASX:ABB) share price is up 40% in a month. What’s next?

It’s head above the clouds for Aussie Broadband shares…
The post The Aussie Broadband (ASX:ABB) share price is up 40% in a month. What’s next? appeared first on The Motley Fool Australia. –

The Aussie Broadband Ltd (ASX: ABB) share price has been a standout performer, surging almost 40% in the past month.

The winning spree is continuing on Tuesday, with the company’s shares this morning leaping to an all-time high of $4.14.

At the time of writing, they have partially retreated to $3.95, still a gain of 5.33% on yesterday’s closing price.

Aussie Broadband share price rallies after FY21 results

The Aussie Broadband share price is on the rise after the company released its FY21 results on Monday.

Despite a well-rounded FY21 performance, Monday’s trading session proved to be a volatile one for the Aussie Broadband share price.

At the morning bell, it opened 4% higher to an intraday high of $3.84, before selling pressure dragged it well into negative territory, down 2.4% to lows of $3.60 by lunchtime.

Aussie Broadband shares finished the bumpy session 1.63% higher at $3.75.

While its shares might have whipsawed back and forth, the company delivered a strong FY21 performance and an uplift in market share across internet and mobile services. Highlights include:

Revenue rose 84% to $350.3 million;

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) surged 433% to $19.1 million before initial public offering costs;
Total broadband services increased 53% to 400,848;
Mobile services lifted 102% to 25,606;
Business and wholesale broadband services up 90% to 37,498.

What’s next for Aussie Broadband?

Looking ahead, Aussie Broadband managing director Phillip Britt commented, “We will continue our marketing and sales focus on organic growth of our residential and business/enterprise segments, as well as exploring new channels for growth. We will continue to review merger and acquisition opportunities that are aligned with our strategy and culture and would deliver value for our shareholders.”

Britt highlighted the company’s fibre build as a catalyst to drive cost savings and growth.

“We anticipate that our fibre network will start to show financial benefits not only through offloading existing leased infrastructure but also through the opportunity to directly connect customers to our own network,” Britt said.

According to the results, the fibre build will be complete this financial year. The company said more than 1,200 km of Aussie Broadband-owned fibre will be in the ground on completion.

The fibre build is expected to result in more than $15 million per year saving in backhaul charges from FY23 onwards.

Changing to be solutions focused

Aussie Broadband aspires to become a “one-stop-shop” for customers’ communications and IT requirements. Instead of selling connections to customers or third parties, the company said it wants to become an “expert [in] design, advice and implementation of solutions”.

The company’s results highlight a number of solutions-focused products under development. This could see the company branch out into cloud services, managed hardware and security in the near term.

Aussie Broadband share price snapshot

The Aussie Broadband share price has delivered a four-fold increase from its initial public offering price of $1.

From a year-to-date perspective, the company’s shares have almost doubled from their closing price of $2.00 on 31 December 2020.

The post The Aussie Broadband (ASX:ABB) share price is up 40% in a month. What’s next? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Aussie Broadband right now?

Before you consider Aussie Broadband, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Aussie Broadband wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Aussie Broadband (ASX:ABB) share price rallies 4% on bumper earnings
Why the Aussie Broadband (ASX:ABB) share price rose 8% to a new high
Why the Aussie Broadband (ASX:ABB) share price just hit a new all-time high
ASX 200 rises, Afterpay soars, Zip jumps

Why the Aussie Broadband (ASX:ABB) share price is charging higher today

Motley Fool contributor Kerry Sun owns shares of Aussie Broadband Limited. 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!