NBN Co $520M Loss FY12

CANBERRA – NBN Co’s spending on communications and marketing tripled to $11.2 million in the 2011-12 financial year.
NBN Co said its results, tabled in Parliament of Friday, were within the range of other fledgling companies delivering a not-to-be unexpected operating loss.

The NBN group generated an operating loss of $520 million for the 12 months to June 30; operational revenues were just $2 million.

Total expenses increased to $564 million from $344 million a year earlier as the rollout of the $37.4 billion network accelerated.

NBN reports the main areas of operating expenditure during the 12 months were in building core capabilities.

Employee-related expenses reached 222 million.

Directors’ fees and board expenses increased to $2.6 million from $561,000 a year earlier.

The NBN Co paid its former chief financial officer, J P Beaufret, $708,000 during the year, as well as termination payments of $286,000 to departed head of business development, Christy Boyce, and $375,000 to the former head of commercial strategy Tim Smeallie.

Total remuneration for NBN Co chief executive Mike Quigley declined slightly to $1.96 million.

Corporate head Kevin Brown was paid a total of $1.08 million, up from $1.04 million a year earlier.