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Optus sees revenue and profit lift

Optus sees revenue and profit lift

Changes in mobile termination rates affect operating revenue

Optus' Allen Lew

Optus' Allen Lew

Telco, Optus has reported operating revenue increased four per cent to $9.12 billion, EBITDA grew six per cent to $2.77 billion and annual net profit rose seven per cent to $901 million for the full financial year ending March 31.

Free cash flow dipped 37 per cent to $617 million due to working capital movements.

Optus CEO, Allen Lew, said it was on-track to achieving its three year target and transforming its business through investing in mobile networks and content services.

During the fourth quarter, the telco’s operating revenue declined nine per cent due to the ACCC’s regulated reduction of industry mobile termination rates, but Optus said it had minimal impact on its profitability.

As of January 1, telco’s mobile termination rates declined from 3.6 cents per minute to 1.7 cents per minute for calls, 7.5 cents to 0.03 cents for SMS.

Mobile handset average revenue per user (ARPU) increased five per cent year-on-year.

Optus now counts 113,000 NBN broadband customers and a total of 1.07 million broadband customers. The telco plans to continue its investment in the strength and reliability in its 4G Plus mobile network, and expanding its links into the NBN, adding new DSLAM ports in network exchanges and expanding its content delivery network.

During the fourth quarter, ending March 31, Optus added 231,000 4G customers bringing the total to 4.68 million 4G Plus customers, representing a 33 per cent increase.

Parent company, Singtel, saw its net profit stabilise for the fourth quarter at $S946 million, but it would have risen four per cent if it wasn’t for currency movements against the Singapore dollar, which affected its net profit by three per cent ($S27 million for the quarter).

Operating revenue for the quarter fell six per cent, also due to Australia’s reduced mobile termination rates and lower handset sales in Singapore, Singtel said.

“Our regional markets are now making their respective transitions from mobile telephony to mobile internet and harnessing the benefits of extensive investments in 3G and 4G networks and services,” SingTel Group CEO, Chua Sock Koong, said. “We worked with our regional associates to navigate this shift from voice to data.”

For the full financial year, Singtel’s net profit grew two per cent to $S3.87 billion and EBITDA was slightly down 1.5 per cent to $S5.01 billion

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