NBN's next million

NBN to release updated corporate plan today, which will include details of how the company will seek to close the gap between the network's projected cost and the government's capped equity contribution

In FY16 NBN is aiming to have almost a million premises with active National Broadband Network services, NBN CEO Bill Morrow said this morning.

Announcing the company's full year results, Morrow said NBN had met its key targets over the previous 12 months.

In early June, communications minister Malcolm Turnbull announced that more than one million premises were able to potentially order NBN services.

NBN aims to hit 955,000 active services in the next financial year, up from 486,000 at the end of FY15.

In total, by the end of FY16 some 2.6 million premises will be able to order NBN services if the company meets its targets.

The company is aiming for $300 million in revenue for FY16, Morrow said.

NBN announced revenue for the 12 months to 30 June of $161 million, up from $60 million.

"During the year we have met or exceeded all of our operational commitments, relating to building the network and connecting and activating end users, which has resulted in significant growth in our key financial metrics," NBN CFO Stephen Rue said.

The company's EBITDA loss increased from $1.01 billion to $1.13 billion, and operating expenses grew from $1.07 billion to $1.29 billion.

Average revenue per user (ARPU) grew from $37 per month to $40 per month.

As of the end of FY15, NBN had received $13.2 billion in equity funding from the government.

The government has capped its equity contribution at $29.5 billion.

However, the cost of the network rollout has reportedly blown out.

As a result, NBN's next corporate plan, which will be revealed later today, is expected to include details of how the company will seek to close the gap between the rollout cost and the government's contribution.

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Tags national broadband networkNational Broadband Network (NBN)

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