NBN sees big surge in revenue

NBN Co has more than doubled full-year revenue as connections to the national broadband network accelerate, but the company acknowledges it must do more to address discontent among consumers.

With 2.4 million homes and businesses now running an active NBN service through a retail service provider such as Telstra or Optus, up from 1.1 million last year, NBN Co yesterday said full-year revenue had spiked 138 per cent to $1 billion in the year to June 30.

During the financial year, 2.8 million premises were connected to the national broadband network, bringing the total number of NBN-ready Australian premises to 5.7 million.

While NBN Co passed the “halfway built” mark and grew its national footprint by 122 per cent, chief executive officer Bill Morrow acknowledged that public confusion around NBN activation, speed and pricing continued to impede the use of the national broadband service.

The company’s 2020 targets remained in place, with a completed build connecting eight million homes driving $8 billion in annual revenue, he said.

Total expenses also grew on the back of an expanding workforce, direct network and subscriber costs, up 71 per cent to $3.4 billion, while adjusted earnings before interest, tax, depreciation and amortisation for the full-year was down 17 per cent to $826 million.