NBN Co posts $4.2bn loss for FY17

NBN Co posted a net loss of $4.2 billion for full-year 2017, as boss Bill Morrow took a small cut to be paid over $3.5 million.

The figures were revealed in the annual report of the taxpayer-funded organisation tasked with rolling out Australia’s national broadband network.

NBN Co said the net loss was in line with expectations.

“The loss reflects the current stage of operations and network build as NBN continues to invest and build a sustainable business for the future,” the company said in its report.

Total revenue for full year 2017 was $1bn, up 138 per cent compared with FY2016.

NBN said it now has 5.7 million properties ready for service — up 97 per cent a year earlier — and has activated 2.4 million properties. Average revenue per user was flat at $43.

Mr Morrow was paid $3,562,809 in total remuneration for the 2017 financial year, very slightly down on last financial year, when he received $3,599,226.

The former Vodafone boss was rewarded with a base salary of $2.36m with over $1m in bonuses, combined with superannuation payments and leave payments for a total of over $3.5m.

The annual report says senior executives were awarded a short-term incentive pool eight per cent larger than targeted because NBN met four of its five performance targets for the year.

Each of NBN’s senior executives were paid over $1m, with chief customer officer John Simon, chief strategy officer JB Rousselot and chief financial officer Stephen Rue each pocketing more than $1.2m from the taxpayer-funded organisation.

Chairman Ziggy Switkowski was paid $233,445 for the last financial year.

Details of Mr Morrow’s pay follows controversy over the salary paid to Australia Post CEO Ahmed Fahour, which walked away with $10.8 million after quitting the government agency.

Australia Post then moved to severely cut its executive pay, offering his successor Christine Holgate a maximum of $2.75 million.

Labor’s communications spokesperson Michelle Rowland told the Australian Communications Consumer Action Network (ACCAN) national conference in Sydney this week that Australians were losing faith in NBN’s ability to deliver the service they expect.

“The public simply does not accept the lack of accountability in getting NBN’s problems sorted once they have been reported,” she said.

“Promises being made that aren’t kept; technicians being booked and people staying home all day for that booking, and then a technician doesn’t arrive, blame shifting at every turn

“We need clear standards so consumers know what to expect. Right now, too much of it remains a mystery.

“No one expects perfection, but I tell you what consumers do expect: Less buzzwords, and more progress.”

Source: The Australian