Aussie Broadband (ASX:ABB) has outlined its priorities for the next three years. As part of its "Look-to-28" strategy, the company targets group revenue exceeding $1.6 billion by FY28, with EBITDA margins surpassing 12.5%.
The company plans to maintain revenue diversification, aiming for less than 60% of total revenue from the residential segment.
Aussie seeks to increase its NBN market share to over 11% and achieve a compound annual growth rate of more than 20% in earnings per share.
The company's Look-to-28 strategy focuses on operational efficiency, growth, strategic investments, and disciplined capital management.
In its trading update, Aussie Broadband reported a strong performance with its best organic quarterly net growth in connections in the past three years. Q3 saw 24,279 net connections, marking a 29% increase from the previous year, with a 12% increase excluding Buddy connections.
Aussie also announced a binding heads of agreement with Optus, reinforcing their partnership in the mobile products and connectivity space.
The agreement will enhance both companies' service offerings and create new growth opportunities.
Aussie reaffirmed its upgraded FY25 guidance, expecting underlying EBITDA between $133 million and $138 million, supported by strong operational momentum.
The revised capital expenditure guidance remains at $75 million to $80 million.
At the time of reporting, Aussie Broadband's share price was $3.85.