The Aussie Broadband Ltd (ASX: ABB) share price had a difficult month in June.
To finish the month, shares in the telco fell more than 20% into the red, bringing losses to over 30% for the year to date.
In broad market moves, the S&P/ASX 200 Communication Services Index (ASX: XTJ) also slipped 3.5% into the red last month and is down 16% since January.
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What's up with the Aussie Broadband share price?
Despite no news from the company in June, investors sold off Aussie Broadband shares at pace last month in tandem with the broad sector and the wider market.
The last we heard from the telco was back in May regarding its Q3 FY22 update. It reported a 42% year on year increase in total active broadband services to 697,083.
These figures weren't inclusive of Aussie Broadband's acquisition of fellow telco provider Over The Wire on 15 March 2022.
Folding in the acquisition and the company expects "annual cost synergies of between $8–$12 million within 3 years".
Over The Wire is expected to deliver approximately $11 million in EBITDA "for the 3.5 months that ABB has owned OTW" in FY22.
Market punishment
Investors weren't satisfied with the announcement at all and sent the share tumbling.
Just a week earlier investors had piled into Aussie Broadband shares at pace, driving prices to a 52-week high of $5.95 on 21 April.
However, shares plunged more than 28% on the day of the trading update announcement.
The market underwent a serious correction in June and ASX telecommunications shares weren't immune to downside.
The broader communications sector was hit equally as hard and the XTJ fell to a 52-week low on 17 June.
As seen on the chart below, the Aussie Broadband share price followed suit soon after. It is now down 29% this year to date but has clipped a 13% gain in the last 12 months.
