Aussie Broadband’s shares have surged following a positive assessment from UBS analyst Evan Karatzas. At lunch, shares in Aussie Broadband soared 17.7 per cent to $5.25. The surge follows the company’s FY25 results, which were reported as in line with expectations. Revenue of $1.19 billion and EBITDA of $138 million matched consensus estimates. Aussie Broadband is an Australian telecommunications company that provides internet and phone services. It focuses on providing high-quality internet and phone services across Australia.
According to Karatzas, the company’s FY26 EBITDA guidance of $157 to $167 million is ahead of consensus at the midpoint by 3 per cent. He also noted a strong start to FY26, with 12,100 net subscribers added in the first seven weeks. The primary catalyst for this positive outlook is the six-year More Telecom deal, which involves migrating 250,000 subscribers from Tangerine and More to Aussie Broadband.
This deal is expected to deliver $12 million in incremental EBITDA and annualise roughly 45,000 subscribers per year. Karatzas expressed a bullish outlook on the stock, stating, “We expect the stock to be up today. More Telecom deal is significant and the upgrades for FY26. We are bullish.” The market appears to have responded positively to both the FY26 guidance and the More Telecom deal.
