Optus reports $841 million annual profit

Optus reports $841 million annual profit

Fourth quarter profit up seven per cent on the previous year's corresponding period

Optus chief executive, Allen Lew.

Optus chief executive, Allen Lew.

Optus has posted a strong fourth quarter profit results of $239 million for the quarter - up seven per cent on the previous year's corresponding period.

Operating revenue was up 11 per cent to $2.29 billion, while annual net profit grew one per cent to $841 million.

Mobile service revenue rose six per cent to $1.21 billion, driven by a higher mobile handset customer base and strong take-up of tiered mobile data plans.

Blended mobile handset average revenue per user (ARPU) increased four per cent on the same quarter last year, reflecting continual 4G customer growth and an increase in customers’ mobile data usage.

In mass market fixed, operating revenues were up three per cent, driven by an increase in Optus’ broadband customer base and a range of compelling home broadband and entertainment offers.

Quarterly EBITDA grew 10 per cent to $723 million driven by strong mobile service revenue growth and lower selling costs from higher take-up of Device Repayment Plans.

Cash on hand for the quarter was $405 million.

Optus chief executive officer, Allen Lew, said in spite of intense competition in the Australian market, Optus had delivered strong EBITDA and net profit growth this quarter.

"This shows our strategy is working," he said.

"We will continue to lead the market with innovative, value-driven offers, an expanding 4G network footprint and exceptional customer experience.”

Operating revenue was up four per cent to $8.79 billion. EBITDA grew five per cent to $2.62 billion.

Underlying net profit grew four per cent year-on-year to $873 million.

EBITDA margin improved 0.4 percentage points to 29.9 per cent.

Free cash flow for the full year was up eight per cent to $976 million.

Optus’ ambition to grow its share of the Australian market continues, according to a company statement.

During the quarter, Optus added 64,000 postpaid handset customers, bringing its total number of mobile subscribers to 9.43 million.

Demand for 4G services was strong, with 345,000 new 4G subscribers this quarter.

At the end of the period, Optus had 3.53 million 4G Plus customers which accounted for 37 per cent of the total mobile customer base.

Throughout the year, Optus continued to enhance its network – with $1.3 billion in capital expenditure and complementary spectrum investments of more than $720 million.

At the end of April 2015, Optus’ 4G network reached 86 per cent of the Australian population.

In mass market fixed, unlimited data plans, combined with a focus on the NBN and Optus’ exclusive Netflix subscription offer, it delivered broadband customer growth of 20,000 to 1.02 million customers.

Lew said Optus would continue to differentiate its brand with new home and mobile products that lead the market in value and flexibility.

"It gives our customers the freedom to use data in ways that suit their lifestyle," he said.

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Tags fourth quarterAllen LewOptus Chief Executive Officerprofit results

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