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Optus reports 41 per cent profit increase despite revenue fall

Optus reports 41 per cent profit increase despite revenue fall

The telco recorded a quarterly profit of $227 million

Optus has recorded a 41 per cent net profit increase despite a five per cent revenue decline.

The telco recorded a profit of $227 million for the last quarter of 2013, compared $160 million in the previous year.

According to a company statement, the decline in revenue reflected lower equipment revenues, the mandated reduction in mobile termination fees and service credits associated with device repayment plans.

Cash flow for the quarter was $250 million, up 32 per cent compared to last year.

Optus, country chief officer, Kevin Russell, said the company’s focus was on delivering sustainable profit growth and making significant improvements in the experience we deliver for our customers. This quarter has seen great progress in both these areas.

“Optus will continue to differentiate its brand with new products and services that address real customer pain points, strengthen trust in the brand and deliver a market leading experience for our customers,” he said.

The company has shed more than 1300 jobs since Russell’s arrival at the company.

However, it recorded a 50 per cent decline in the number of new complaints to the Telecommunications Industry Ombudsman for the quarter ended September 30, 2013.

This has put Optus’ benchmarks for customer experience into positive territory for the first time in a number of years, according to a company statement.

These customer experience improvements are reflected in a reduction in mobile post-paid retail churn to 1.4 per cent.

Russell said Optus was making real progress, increasing its leadership over key competitors customer advocacy.

“We’re seeing an accelerated take-up of initiatives like My Plan, which provide customers with greater certainty over the cost of data usage,” he said.

“Customer advocacy is a critical platform for our business to grow strongly in the years ahead.”


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