Home Industry Telecoms & NBN VIDEO: NBN Co results to December 2014 - all numbers up including revenue and losses
VIDEO: NBN Co results to December 2014 - all numbers up including revenue and losses Featured

NBN Co’s results show a doubling of premises connected, higher ARPU, 3x revenue, higher capex costs, but larger EBIT and EBITDA losses.

While the vast majority of Australia’s population is still unable to get an NBN connection, NBN Co is nevertheless making progress in getting more homes passed and more homes connected.

Note: the 1 hour and 8 minute video of NBN Co’s press event has finally been uploaded and is below. we were forced to upload in 360P because a 1 hour file at 1080P is nearly 5 gigabytes in size, and without NBN upload speeds we went with 360P.  However, you can download NBN Co's presentation in PDF form free of charge here, the same set from today's presentation. You can follow along with the slides as you listen to and/or watch the presentation, which is embedded below:

Naturally, the company says its results are a sign of ‘significant progress’ over the six months to December 2014 and represent ‘substantial increases in the number of serviceable premises, active end-users and telecommunications revenue’.

For example, serviceable premises increased to 748,552, across all the technologies NBN Co offers a broadband connection with, which is 35% up on the six months to 30 June 2014, and which is ‘nearly double the corresponding period in 2013’.

NBN Co also says ‘the active premise count as of 31 December 2014 is 322,391 across all technologies - an increase of more than a third over the period and a 147% increase over the prior comparative period.

There is definite progress, even if we’re still at least five years away from the NBN Co’s 2020 ‘objective’ of having all homes, business and communities across Australia’ able to access high speed broadband, with the goal of connecting 8 million premises.

NBN Co also reports a 2.5x increase in premises activated with an NBN connection, a tripling of telco revenues, an 8% increase of ARPU figures to $39, but EBIT and EBITDA losses are up.

NBN Co’s Half Year Report 2015 is available to download here (PDF link). The Half Year Results Presentation is available here (PDF link), and the Media Release for the Half Year Results FY15 is also here (PDF Link)

Capex for the period was $1.4 billion, a 21% increase over the prior comparative period and $7.1 billion (life-to-date), and EBITDA loss of $497 million (up 4% over the prior comparative period and operating expenses of $562 million, which is 12% up over the prior comparative period.

The 12-week rolling average for service premises was at 8,900 per week at December 2014, and says that by February 2015, which we’re in as this article is published, has jumped to 10,200 serviceable premises per week.

NBN Co has also said it has dramatically improved the way that it connects homes passed by fibre to a fibre connection via a multiport.

Under the previous management, it took several construction teams of people and months of time to get a customer connected to a fibre-based NBN service, but as Bill Morrow explains in the video, NBN Co has streamlined this process to eliminate the multiple construction teams and months-long waits.

For the first time in the project’s history, more than half of all premises nominally passed by fibre can now order a National Broadband Network service’.

The company says it is ‘on track’ with its plans to progressively transfer copper and HFC assets to the NBN, with FTTB and FTTB products on course to be released ‘this year’.

Additional details are that:

With Fibre to the Node - construction is underway in all 11 build trial locations. This covers 200,000+ homes in Queensland and NSW - fantastic results according to Bill Morrow. FTTB or fibre to the building is seeing design and construction underway for 6000 apartments in NSW, VIC and the ACT, with a product release on FTTB imminent.

Hybrid-fibre coaxial - equipment contract with ARRIS signed, with an upgrade path to gigabit speeds promised. An initial HFC pilot is promised by the end of the calendar year, with a 2016 commercial launch.

The HFC cables from Telstra and Optus are merely the transmission medium, but NBN Co will upgrade the electronics. It will make sure DOCSIS 3.0 is upgraded across the entire HFC footprint. 376 Mbps down and 49 Mbps going up - which isn’t even using all of the spectrum on the cables being used.

DOCSIS 3.1 will take this even higher - trials worldwide are getting up to the gigabit per second level. There are four service offerings for gigabit per second in Australia already, but Morrow says it is good news that HFC will be able to deliver this in the future.

During the presentation, NBN Co boasted of improving its company culture and improved human resources systems and processes, with promises of implementing BPE (business process excellence) and statements about Six Sigma.

Bill Morrow’s closing comments were to assure us that ‘we have people, innovation and heart and minds to deal with whatever obstacle gets thrown in our way. We are changing the digital face of the country and we believe the technology we are deploying will do just that’. He explained that NBN Co wanted to stay in the parameters it had set and acknowledged there was a long road ahead.

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Alex Zaharov-Reutt

One of Australia’s best-known technology journalists and consumer tech experts, Alex has appeared in his capacity as technology expert on all of Australia’s free-to-air and pay TV networks on all the major news and current affairs programs, on commercial and public radio, and technology, lifestyle and reality TV shows. Visit Alex at Twitter here.

 

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