Aussie Broadband (ABB) – Riding the customer’s ‘need for speed’

Aussie Broadband provides telecommunications and broadband internet services in Australia. The company serves residential, business, wholesale, and enterprise and government customers, as well as software companies and telecommunications carriers. Aussie Broadband was founded in 2003 and is headquartered in Traralgon in Victoria.

The recent release by the Australian Competition and Consumer Commission (ACCC) of the NBN Wholesale Market Indicators Report for the March quarter highlights ongoing market-share gains for Aussie Broadband (ABB), particularly in the higher-speed tiers and customers utilising fibre to the premise (FTTP) technology. Sector discounting around the end of financial year has been aggressive, and Aussie Broadband participated in this competitive dynamic. We see low earnings risk into the FY26 result, however, given the recent guidance provided for operating earnings (EBITDA) and capital expenditure. We reiterate our Buy recommendation given the recent softness in the share price.

‍

Aussie Broadband’s overall market share within the NBN network grew to 9.1% in the March quarter, up from 8.8% in the December quarter of CY25, while market share of the traditional top four telecommunications carriers – Telstra (TLS), Optus, Vodafone operator TPG Telecom (TPG), and the Macquarie Asset Management (MAM) and Aware Super-owned Vocus – has reduced to 75.3% from 78.8%in the quarter. The company’s share of the FTTP market rose to 11.5%, up from 10.7% in the March quarter of CY25, while its share of customers in the 100 megabits per second (Mbps) or greater speed categories rose to 68.0%, versus the NBN average of 43.7%.

‍

Post the report, we maintained our Buy recommendation on Aussie Broadband but trimmed our target price to $6.30 from $6.37.

‍