ABB announces More wholesale services agreement

Open PDF
Stock Aussie Broadband Ltd (ABB.ASX)
Release Time 25 Aug 2025, 8:17 a.m.
Price Sensitive Yes
 Aussie Broadband signs 6-year wholesale deal with More and Tangerine
Key Points
  • Adds 250,000+ broadband connections to Aussie Broadband's network
  • Estimated $12M in annualised underlying EBITDA from FY27
  • Transaction 12% accretive to underlying EPS on a pro forma basis
Full Summary

Aussie Broadband (ASX:ABB) has signed an exclusive six-year wholesale agreement with More Telecom (More) to provide NBN network services to More and its jointly operated group company, Tangerine Telecom (Tangerine). The agreement will see the migration of More and Tangerine's approximately 250,000 residential and business broadband customers to Aussie Broadband's network, boosting Aussie's total broadband connections to around 1.04 million. The wholesale services agreement is expected to deliver approximately $12 million in annualised underlying EBITDA from FY27 based only on the More and Tangerine connections at the time of migration. The transaction is also 12% accretive to underlying EPS on a pro forma basis. Aussie Broadband will issue approximately 5.88 million shares to More as part of the agreement, with 50% escrowed for 12 months and the remainder until the earlier of 12 months after migration or June 2027. Aussie Broadband has also agreed to sell its Buddy Telco brand and customer assets to Tangerine, with the transaction expected to be completed in H2 FY26 for an estimated $8 million. The wholesale services will be provisioned via Aussie Broadband's new digital wholesale platform, Nitrogen, which enables wholesale partners to scale their operations.

Guidance

The wholesale services agreement is expected to deliver approximately $12 million in annualised underlying EBITDA from FY27 based only on the More and Tangerine connections at the time of migration.

Outlook

The partnership with More and Tangerine presents significant growth opportunities over the six-year term of the agreement, with further upside generated by ongoing growth in data consumption and net connections.