ASX 300 stock Aussie Broadband Ltd (ASX: ABB) has kicked off the financial year spinning the growth wheel.
The telco company reported its trading update for the first quarter of FY25 today, which showed a double-digit percentage increase in broadband connection growth compared to last year.
Investors reacted positively, pushing the ASX 300 stock nearly 5% higher from the open. At the time of writing, the Aussie Broadband share price is trading up 3% at $3.89. Let's see what the company posted.
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ASX 300 stock reports double-digit growth
It was a period of growth for the ASX 300 stock during the first quarter of FY25. The total increase in broadband additions was 3% over the year.
Key wins in its enterprise and government (E&G) division, up 21% on a net basis, underscored Aussie Broadband's growth.
But it wasn't just limited to the E&G segment. Overall, the company added 22,119 broadband services in the quarter, reflecting a net 12.1% increase over the past 12 months.
It added 2,647 net broadband additions to its wholesale segment as well – up by more than a third.
Driving the ASX 300 stock's numbers? Management says its NBN market share has grown to 7.60%, up from 7.38% just three months ago.
Thank those gains across its E&G and wholesale segments for capturing the additional market share.
The company also highlighted new partnerships, such as a reseller agreement with Red Energy.
Aussie is excited by the new partnership and, following its commencement in midSeptember, expect to see it scale further over the financial year with Red Energy and Direct Connect initially offering residential NBN and Opticomm broadband. We will provide a further update at the half year results.
The agreement is on a non-exclusive basis and ABB is continuing to develop other partnerships & potential white label agreements.
Aussie Broadband also secured a five-year, 400-site network deal with The Reject Shop during the period.
This agreement includes a number of tech and cybersecurity add-ins, aiming to improve network management across all of The Reject Shop's locations.
Other key wins include a 36-month agreement with Auto & General to provide high-speed links between Australia and South Africa, and a deal with Ventora Group for a fully managed SD-WAN network.
What's next for this ASX 300 stock?
Aussie Broadband's focus on expanding partnerships and increasing its market share has positioned it well for continued growth.
The Red Energy agreement, while currently targeting residential NBN and Opticomm broadband, is expected to gain momentum over the financial year.
Furthermore, Aussie Broadband now supports around 5,463 Origin broadband services, which are not included in its reported totals.
Management did not provide specific guidance for the remainder of the financial year.
The stock is also rated a moderate buy from consensus, according to CommSec.
Foolish takeaway
Investors are buying this ASX 300 stock today after the company posted its Q1 FY25 trading update.
The key driver is that Aussie Broadband brought on new customers during the quarter while securing new wins in its wholesale division.
The Aussie Broadband share price has increased by almost 2% in the last 12 months and by around 2.5% this year.
