03/11/2023 16:41

Aussie Broadband (ABB) $3.58

ABB -8.67%: shares were back trading after the company raised $120m through a placement to help fund the acquisition of Symbio (SYM). We like the acquisition from several perspectives. ABB is raising money at a higher multiple so the deal will be EPS accretive, while we see plenty of revenue and cost synergies to come out of the deal for telco-as-a-service business Symbio.

Read more

11/10/2023 09:14

Aussie Broadband (ABB) $4.11

One of the largest positions in the portfolio, Aussie Broadband is on a path to make itself larger. They are currently in a tussle with Superloop (SLC) to buy wholesale communications business Symbio (SYM) with a mixed cash and scrip deal worth $3.15/sh as at yesterday’s close, valuing SYM at ~$270m

Read more

25/08/2023 17:31

Aussie Broadband (ABB) $3.44

ABB +10.97%: Rallied strongly on a ‘meet’ to FY23 numbers but they talked up prospects for FY24. FY23 revenue of $878m was inline, as was EBITDA of $89.6m while they guided to FY24 EBITDA based on current market conditions, operating plan, pipeline etc of $100-110m, up 12%-23% on FY23, however, they went onto talk favourably about variables that could grow that number - in other words, it seemed like they presented a baseline to work up from.

Read more

22/06/2023 09:22

Aussie Broadband Ltd (ABB) $2.97

Earlier this month ABB announced the addition of a likely ~+26k users in 3Q-23 (seasonally slower period) or 100k+ annually off a larger base. The group now holds ~7.5% of market share in the group’s markets, while its growing +1% annually of the total network and ultra-high speed connections share is running hottest for the group, importantly where the best margin and savings sit.

Read more

02/05/2023 16:40

Aussie Broadband (ABB) $3.20

ABB -3.90%: the telco market took a hit today after the ACCC rejected a new NBN wholesale pricing plan which would’ve reduced the cost burden on internet service providers. The sticking point related to the reduction in charges for high-speed 50mbps plans where the Government has legislated cost recovery requirements that the NBN’s plans would’ve challenged.

Read more

27/02/2023 16:45

Aussie Broadband (ABB) $2.90

ABB -1.02%: 1H results for the telco today were mixed, however, the beats largely outweighed the misses. Revenue fell short of expectations, and FY guidance was cut there to $780-800m, down ~4%.

Read more

07/12/2022 09:31

Aussie Broadband (ABB) $2.67

Our largest weighting in the Emerging Companies Portfolio has struggled over the past year, although since we flagged it as a conviction buy it is up ~15% to be the top performer on the list. Likely changes to wholesale NBN pricing are a positive and is the recent catalyst for the move higher, however, this is a company all about growth in connections...

Read more

26/10/2022 09:45

Aussie Broadband (ABB) $2.32

The telco hosted its AGM recently with a more positive tone taken than what they presented at their full-year results and a slight acceleration in originations.

Read more

01/09/2022 16:42

Aussie Broadband (ABB) $2.66

ABB -4.32%: It has been a tough period for ABB with a number of earnings downgrades sending the stock down 41% year to date. Following this week’s results and share price decline, it is worth highlighting that all of ABB’s directors have bought stock in the market since, with 6x change of interest notices out so far. Total Director buying in the last 2x business days now represents ~$1.4m. Some of the most aggressive director buying we have seen and a very good sign.

Read more

31/08/2022 09:32

Emerging Companies Portfolio

The portfolio was up +1.80% in the week, strongly outperforming the S&P/ASX Small Ords index which fell.  Cash in the portfolio is sitting at around 9%. Strength in  Paladin (PDN) +20% and Lovisa Holdings (LOV) +18% drove the performance, more than offsetting weakness in Aussie Broadband (ABB) -15% and EML payments (EML) -9%. The portfolio was also supported by dividends from Bapcor (BAP) and Pinnacle Investment (PNI).

Read more