Aussie Broadband Ltd (ASX: ABB) shares have been rising in April, though investors may have noticed that the telco's managing director Phillip Britt is selling over a million dollars of shares.
For investors that haven't heard of Aussie Broadband, it's a telco and technology company that has been operating since 2008, with its headquarters based in Morwell in Victoria.
The company has a broad range of customers including residential, business, enterprise and government customers, and provides wholesale access to other telcos and managed service providers.
Aussie Broadband is the 5th largest provider of broadband services in Australia – it has a wholesale agreement with NBN Co, while also having its own fibre network and some leased backhaul infrastructure from third parties.
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Aussie Broadband share sales
On 3 April 2023, it was announced by the telco that managing director Phillip Britt had sold 268,602 shares and would sell up to a further 231,398 shares over the next month.
Aussie Broadband explained that the proceeds would be used to "fund tax obligations".
Another reassuring factor to consider is that the sale and potential sales represented a total of 3% of Phillip Britt's total holding of Aussie Broadband shares.
The company said that he remains a "substantial shareholder of the company".
Prior to the share sale, the entity he's involved with called Digital Interworks Pty Ltd held 16.25 million Aussie Broadband shares and after the latest sale announcement that entity held 15.75 million shares – his entity has sold 500,000 Aussie Broadband shares, which is how much Aussie Broadband said he would.
Reasons to remain optimistic
The share sale only represents a small portion of the overall holding, so Britt is still highly aligned with ordinary shareholders.
Plus, investors can only go off the latest result to understand the company's operating performance.
In the FY23 half-year result, it revealed revenue growth of 27% to $379 million and earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 86% to $41.1 million. It was helped by an increase in the gross profit margin of 2.5 percentage points to 34.9%.
Total broadband connections increased by 27% to 635,200, while its NBN market share grew from 5.66% to 7.01%.
In April 2023, the Aussie Broadband share price has gone up by close to 7%.
Foolish takeaway
The business is seeing ongoing growth, increasing profitability and a stronger market share. Britt is still highly invested in the business. Investors can remain positive about the company's prospects.
