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Strong First Half for Aussie Broadband as Revenue and Profits Surge

Aussie Broadband Limited (ASX: ABB) has reported a stellar first half performance, with revenue, gross margin, and underlying EBITDA all posting impressive gains.

Revenue grew 6.8% to $588.5 million, driven by strong growth across the company's Residential, Business, Enterprise & Government, and Wholesale segments. Gross margin expanded 7.5% to $217.6 million, while underlying EBITDA jumped 8.9% to $65.8 million on a pro-forma basis.

The company's broadband subscriber base continued to expand, with connections growing 6.4% to 728,000. Aussie Broadband now holds a 7.8% share of the NBN market, excluding satellite.

Aussie Broadband has also upgraded its FY25 underlying EBITDA guidance to $133 million to $138 million, up from the previous range of $125 million to $135 million. The company has also revised its capex guidance upwards by $20 million to a new range of $75 million to $80 million as it accelerates investment in its Aussie Fibre network and internal cloud infrastructure.

Looking ahead, the company remains focused on organic growth, but is open to considering acquisition opportunities that align with its strategic objectives. Aussie Broadband will share more details on its three-year plan at an Investor Day on April 10, 2025.

RPMGlobal Divests Advisory Business, Focuses on Software

RPMGlobal Holdings Limited (ASX: RUL) has announced a strategic shift, signing an agreement to divest its global Advisory division to SLR Consulting Australia for $63 million.

The divestment will allow RPMGlobal to focus solely on its software business, with the primary objective of becoming the leading software technology provider in the global resources industry.

The enterprise value of $63 million represents a multiple of 2.0 times FY2024 Advisory net revenue and 8.1 times FY2024 Advisory profit contribution. All RPM advisory employees will transfer to SLR, and the Advisory business will operate under the 'SLR' brand.

In a separate announcement, RPMGlobal reported a 9.6% increase in revenue to $58.2 million for the first half of FY25. Software revenue grew by 6.8% and Advisory revenue increased by 15.4%, while EBITDA rose 20.6% to $8.2 million.

The company is optimistic about the years ahead, with the divestment of the Advisory division allowing it to focus solely on its software business, which is expected to make the company more attractive to software-focused investors.

Lovisa Delivers Solid Sales and Profit Growth

Lovisa Holdings Limited (ASX: LOV) has reported a strong financial performance for the first half of FY2025, with revenue, gross margin, and earnings all increasing significantly.

Revenue grew 8.8% to $405.9 million, driven by continued expansion of the global store network. Gross margin expanded 170 basis points to 82.4%, reflecting effective pricing and inventory management.

EBIT increased 10.7% to $90.2 million, and net profit after tax rose 6.5% to $56.9 million. The company opened 57 new stores during the period, taking the global network to 943 stores across 49 markets.

Looking ahead, Lovisa remains focused on opportunities for expanding both its physical and digital store footprint, with 16 new stores opened since the end of the half and plans to open its 50th market in the coming weeks.

The company's strong balance sheet, with net cash of $6.7 million and available facilities of $120 million, support continued investment in growth.

IPD Group Delivers Record Half-Year Results

IPD Group Ltd (ASX: IPG) has reported record half-year revenues and earnings for the period ended 31 December 2024, with sales up 46.6% and net profit after tax increasing 40.0%.

Revenue reached $176.9 million, driven by the acquisitions of EX Engineering and CMI Operations last financial year. EBIT grew 47.4% to $20.2 million, while NPAT increased to $13.3 million.

The company's diverse product range enabled it to benefit from growth in industries such as data centres and water/wastewater, offsetting challenges in the commercial construction sector.

IPD Group's balance sheet remains strong, with net debt of $2.2 million and operating free cash flow of $25.3 million. The company declared a fully franked interim dividend of 6.4 cents per share.

Looking ahead, IPD Group sees ongoing opportunities in the transition to renewable energy, growing data centre demand, electric vehicle charging infrastructure, and public transport electrification. Management remains focused on executing strategic priorities and delivering sustainable growth.