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Optus to focus on sustainable profit growth

Optus to focus on sustainable profit growth

Announcement follows its Q1 FY2012/13 financial results

Optus will be focusing on sustainable profit growth built on key pillars, according to its group consumer CEO and Australian chief country officer, Paul O’Sullivan.

This follows the recent Q1 FY2012/13 financial result announcement by Optus' parent company, Singapore Telecommunications (SingTel).

O’Sullivan mentioned that the initiatives Optus is working on are medium term programs, but the company aims to remain committed to improving customer experience while at the same time, driving sustainable growth for the business with a refocused strategy.

He said, in moving forward, Optus will focus on:

  • Reinvigorating the brand with an emphasis on customer experience differentiation, operation of its newly created customer division and the relaunched brand with new positioning and digital imagery, as well as spend away from ads to improving customer yield and life span.

  • Investing in its mobile network to lift customer experience and establish a premium quality network, which includes the 4G business services launch and 3G network upgrade. The Vividwireless acquisition completion has also provided Optus with access to significant amounts of LTE spectrum.

  • Ensuring it has a competitive call space, as the comapny restructured it to help fund many of its customer initiatives – including a significant realignment of its handsets subsidy levels.

“We’ve recently seen the results from our two major competitors in Australia. These confirm our last quarter outcomes that the Australian telecommunications industry is experiencing a period of significant value erosion. Industry profitability has significantly declined over the last 2 years and mobile service revenue is now fixed growth,” O'Sullivan said.

However, he said it is not expecting a negative revenue stream with the new TCP code changes.

“Going back two to three years, we began a major transformation program where we did a lot of customer research in Australia. So while there might be some operational changes required, the fact that it will lift customer standards is something that we see as a positive,” O'Sullivan said.

SingTel group CEO, Chua Sock Koong, said the company has made some changes that will allow it to keep its prices competitive and sustain network investment.

It includes its 4G LTE services rollout in Singapore and Australia; tiered price plans for mobile data in Singapore; revised data allowances in Australia; and approval from the ACCC to migrate its paper customers onto NBN.

“These, in turn, will drive a better experience for all our customers,” she said.

In the infocom space, Singtel has continued to gain traction on its Cloud services - the number of business customers using its Cloud based solution in Singapore increased to 200,000 from 180,000 in the preceding quarter.

“We have also won a renewed contract with the Singapore government, worth $SG1 billion, which includes a 5-year contract to provide and maintain a private Cloud infrastructure,” she claimed.

In the digital space, Singtel acquired restaurant review portals HungryGoWhere and signed an agreement for the acquisition of eatability in Singapore and Australia respectively.

“We see these acquisitions as central to our strategy of providing more localised digital content relevant for our market,” she added.


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