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%. But that was largely the extent of the bad news with EBITDA of $41.1m, up 38% on the last half, and guidance increased to $85-90m, around 5% above consensus. Margins are expanding as the company wins more business contracts following the Over the Wire acquisition last year, while synergies have also supported earnings. We like the result and ABB may see a further benefit come through from lower NBN charges that were flagged this week.
MM is bullish and long ABB
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