Telco provider, Optus, is continuing to transform its mobile operations to maximise future revenue potential from growth in mobile data usage.
Some of the transformation activities conducted during the first quarter, ending June 30, included extensive restructuring of its retail footprint, new mobile retail plans that eliminate unfair breakage fees, new sustainable pricing for wholesale mobile data services and renewing the Optus brand.
For the first quarter, Optus managed to grow its earnings before tax by five per cent to $572 million. Operating revenue took a slight 5.3 per cent dip to $2.1 billion and operating expenses also dropped nine per cent to $1.56 billion, which was driven by lower selling and administrative costs. Net profit grew eight per cent to $167 million.
In its mobile business, revenue declined six per cent due to the continuing effect of the mandated reduction in mobile termination fees, decreased equipment sales as device subsidies were reduced and higher service credits associated with device repayment plans.
Optus Australia country chief officer, Kevin Russell, said it now had strong momentum behind its key operational changes that will differentiate the brand and customer service experience.
“The launch of My Plan this quarter was a critical step in eliminating unfair breakage costs and bill shock for Australian consumers while establishing a sustainable platform for 4G data revenue and growth,” Russell said.
He also highlighted its mobile postpaid retail churn was down on the preceding quarter and new TIO complaints declined 36 per cent.
In the coming year, Optus will focus on continuing to strengthen its 3G network and expanding its 4G reach to more than 70 per cent of the population by mid-2014. Network rollout plans will also involve preparing its mobile network for the new 700 MHz and 2500 MHz spectrum acquired at the action in May.