NBN Co has reported $2.5 billion in revenue for the first half of FY2022 as its subscriber and operational costs saw significant reductions for the period.
In the six months ended 31 December 2021, the network provider’s revenue grew 12 percent year over year from $2.26 billion to $2.5 billion, while its losses decreased from $2.1 billion to $857 million.
Subscriber costs saw an 84 percent reduction during the period from $809 million to $126 million, citing fewer customer disconnections and migrations from legacy Telstra and Optus connections. Operating expenses meanwhile declined 11 percent due, largely driven by its reduced workforce after the initial build was completed in 2020.
Revenue from business customers increased to $493 million in the half, up 24 percent from $397 million year over year.
Residential Average Revenue Per User (ARPU) increased to $46, up from $45, due to increased demand for higher speed tier plans.
“NBN Co is meeting its promise to customers and delivering on the company’s purpose to lift the digital capability of Australia,” NBN Co chief executive Stephen Rue said.
“We have built a strong, resilient, secure and stable network that has proven its worth, particularly over the last two years, as customers in metropolitan, regional and remote areas of Australia have relied on the network to work and study from home, gain access to vital services such as telehealth appointments, shop, connect with friends and family, and be entertained.”
Rue added that NBN Co is also on track to deliver financial results for full year FY2022 in line with guidance.
The network provider also revealed its plan to upgrade some connections to fibre to the premises, its $4.5 billion Network Investment Plan, is “making good progress” and is scheduled to enable the first few premises starting late March 2022.
NBN Co added that its investments for its Hybrid Fibre Coaxial (HFC) network are “progressing well”, with all premises with the technology now able to access its Home Superfast wholesale speed tier (up to 250mbps) and 95 percent with access to the Home Ultrafast wholesale speed tier (up to 1 gigabit).
Earlier this week, NBN Co announced a new round of discounts for some customers on its 12Mbps wholesale speed tier to help move up to the 25Mpbs tier, as it continues to push the latter as its new minimum speed. The discounts will run for a six-month period, and range from $8 a month for the 25Mbps tier and a $10 a month discount for those moving to the 50Mbps tier.