Aussie Broadband Announces First Dividend Amid Job Cuts

Highlights:

• First Dividend Declared: Aussie Broadband will distribute its first-ever dividend following a 21% increase in annual net profit.
• Job Cuts for Efficiency: The company is reducing its workforce to improve efficiency after losing a key wholesale contract to rival Superloop.
• Commitment to Local Jobs: Despite the job cuts, Aussie Broadband remains dedicated to its Australian service centers and has no plans to offshore jobs.

Growing Profits and New Dividend

Aussie Broadband (ASX: ABB) is set to pay its first dividend following a significant 21% increase in annual net profit. The growth comes as the company expands its customer base and enhances its market position. Managing Director Phillip Britt highlighted that the company’s improved financial performance has enabled it to reward shareholders with this inaugural dividend.

Efforts to Improve Efficiency

Despite this financial milestone, Aussie Broadband is also implementing cost-saving measures, including a reduction in its workforce. Britt noted that the company needs to enhance its operational efficiency after losing a key wholesale contract with Origin Energy to competitor Superloop. "With Origin exiting the business over the coming months, it is crucial for us to streamline our operations and reduce our headcount," Britt explained.

Commitment to Local Employment

Aussie Broadband remains committed to maintaining its Australia-based service centers despite these cuts. The company currently employs 1,300 people in Australia, not including staff from Symbio, the software group it acquired last year. Symbio, which employs approximately 500 individuals, has been independently reducing its workforce.

Focus on Core Operations

The job cuts at Aussie Broadband are part of a broader strategy to align with the company’s core operational needs and financial goals. While Symbio’s job reductions are separate, they reflect the company's ongoing efforts to consolidate and optimize its resources.

Aussie Broadband’s proactive approach to enhancing efficiency and rewarding shareholders marks a significant development in its growth journey, as it navigates a competitive market landscape.

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