Aussie Broadband’s (ASX:ABB) guidance cut sparks sell-off

Two changes to Aussie Broadband’s (ASX:ABB) outlook was enough to send the share price tumbling 23.7 per cent to $4.24 in their third quarter, financial year 2022 update.

Firstly, the updated full-year EBITDA guidance was cut from $27 million to $30 million to $27 million to $28 million from their second quarter results, and secondly, their total active broadband connections guidance was trimmed from 580,000 to 590,000, to 580,000 to 585,000.

The Aussie telco also unveiled that the connectivity virtual circuit charge which covers the bandwidth that a telco provider can access from its NBN network will be $4.9 million for the third quarter compared to the $1.8 million for the second quarter, given that it’s “18 per cent higher than forecast driven by increased peak time customer usage”.

The Aussie internet firm also completed its takeover of Over the Wire in March valued at $5.75 per share, an over 26 per cent premium to today’s trading price.

The internet provider’s share price has cratered the most on record since its debut in October 2020 at $1 a share.