ABB -1.02%: the telco provided a 3Q trading update today with connections continuing to grow at a strong pace even when stripping out the White label segment soon to be transferred to Superloop (SLC). 18.8k net new connections in the quarter driven by residential additions while the company flagged momentum had continued into 4Q for the segment. The company maintained FY24 guidance of EBITDA between $106-121m for the group including the contribution from Symbio that was acquired last quarter, in line with consensus expectations.
Aussie Broadband recently lost their white label deal with Origin (ORG) to Superloop (SLC), a company they had been exploring an acquisition of. Interestingly, today’s update included a comment around awaiting approval from Singapore regulators, potentially paving the way for another crack at a deal (MM speculation only)
- Today’s quarterly highlighted the momentum in the business ex-Origin deal. We see further upside here
MM is bullish & long ABB in the Emerging Companies Portfolio
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