NBN Co passes fibre tipping level as velocity uplift carries FY26 development

NBN Co has reported income of A$5.92bn for the 12 months to 30 June 2026, up 3% as extra of its clients now join over fibre than over copper for the primary time.

Earnings earlier than curiosity, tax, depreciation and amortisation (Ebitda) rose by 5% to A$4.46bn, above the highest of its steering vary. Working bills fell by 3% and capital expenditure by 13%, lifting free money move earlier than financing actions by greater than half.

Telecommunications income grew by 4% on higher-speed plan take-up and inflation-linked wholesale value rises underneath the particular entry enterprise, whereas enterprise and enterprise income rose by 2%.

NBN Co accomplished greater than 575,000 copper-to-fibre upgrades within the 12 months, a 3rd greater than in monetary 12 months 2025, taking its fibre base to three.3 million premises – 40% of the fixed-line footprint. It additionally met its goal of creating 3.5 million fibre-to-the-node clients eligible to improve to full fibre, on time and on funds.

“We’re delivering on our technique to create a fibre-led future for Australia,” stated chief government Ellie Sweeney, in her first full monetary 12 months on the firm after becoming a member of from Vocus in December 2024. “This marked an inflection level, with extra clients linked to fibre than copper for the primary time in NBN’s historical past.”

Greater-speed tiers accounted for a lot of the corporate’s income development. Underneath its Speed up Nice programme launched in September 2025, NBN Co lifted the speeds of its three quickest residential merchandise on fibre and hybrid fibre coaxial (HFC) connections with out altering what retailers pay. As of 30 June, some 47% of providers had been on plans of 100Mbps or above, up from 32% a 12 months earlier, and 37% had been on 500Mbps or above, up from 4%.

Lively premises – properties or companies with an lively NBN service – grew by roughly 21,000 throughout the entire community. With the NBN construct basically full, development now is determined by what every buyer pays, and the options are multiplying. Optus and TPG, for instance, promote 5G fastened wi-fi web providers that bypass the wholesale community solely, whereas Starlink has taken share in regional areas the place NBN Co’s satellite tv for pc service has lagged.

Wholesale costs rose once more on 1 July, and extra steeply than a 12 months earlier, a rise retailers might cross on to clients. In March, the Australian Competitors and Shopper Fee proposed tighter service requirements than NBN Co had put ahead for the regulatory cycle now underneath method.

The tougher operational problem for NBN Co is the copper that is still. Of the ultimate 622,000 fibre-to-the-node premises, solely round 90,000 might order an improve in opposition to a 2030 deadline for a programme backed by as much as A$3bn in Commonwealth fairness plus greater than A$800m from NBN Co. And of the greater than 5 million premises already eligible for a free improve, solely a minority have taken it up.

In satellite tv for pc, roughly 300,000 premises are earmarked for a low Earth orbit service powered by Amazon Leo, the constellation rebranded from Venture Kuiper in November 2025. NBN Co is trying to transition some 78,000 clients on its legacy Sky Muster geostationary system to the brand new providing, which remains to be underneath improvement.

NBN Co’s steadiness sheet nonetheless carries the price of its fibre community construct. The statutory loss earlier than tax narrowed 16% to A$811m, and free money move after financing remained detrimental, although it improved by A$505m from the final monetary 12 months. Web debt stood at A$27.5bn, with borrowing prices edging up as older, cheaper hedges matured.

Sweeney stated the outcomes “replicate continued demand for higher-speed broadband providers, disciplined execution throughout the enterprise and the long-term advantages of NBN’s ongoing funding in community functionality, reliability and buyer outcomes”.

“The FY26 momentum displays NBN’s long-term technique to unlock extra worth from this nation-building funding throughout fibre, HFC, fastened wi-fi and satellite tv for pc, that can help Australia’s rising digital and AI wants for many years to return,” she added.