Optus has reported a nine per cent increase in quarterly net profit, for the quarter ending December 31, 2015. The company’s EBITDA was up five per cent to $685 million, while its revenue was up six per cent to $2.43 billion.
The company said the growth reflects strong equipment sales, and sustained growth across its mobile and fixed businesses, in addition to continuing with network investments in supporting its strategy to become a mobile-led multimedia company with innovative data plans and compelling content.
Optus’ mobile service revenue rose one per cent to $1.24 billion. Incoming service revenue declined five per cent due to lower inbound roaming revenues, while outgoing mobile service revenue rose two per cent, underpinned by a 133,000 year-on-year increase in postpaid handset customers.
For mass market fixed, its operating revenue grew six per cent. The company attributed the growth to Optus’ nbn customer base and increased take up of Optus TV.
“The expanding national nbn footprint and competitive entertainment offers increased Optus’ nbn broadband customer base. Optus now has 88,000 nbn customers, and a total of 1.04 million broadband customers,” it said.
In addition, free cash flow for the quarter was $147 million, mainly reflecting higher investments in mobile customer acquisition and retention.
Optus said it added 12,000 new mobile customers during the quarter, bringing the total number of mobile subscribers to 9.37 million. The number of 4G subscribers increased to 4.45 million, a 40 per cent year on-year increase. 4G Plus customers now account for 47 per cent of Optus’ total mobile customer base.
As for pre-paid handset customers, it returned to growth this quarter with net additions of 61,000 subscribers, while postpaid handset customers declined by 26,000 this quarter, Optus said this was impacted by the deactivation of a wholesale customer.
Optus CEO, Allen Lew, said during the quarter, Optus made significant progress building an even better network for customers. Lew mentioned Optus’ 4G Plus network is now available at 4451 regional and metropolitan sites, and reaches 92 per cent of Australians as of January 31.
“In the coming quarter, Optus will continue to strengthen and extend the reach of its 4G Plus network as it increases deployment across its 700 MHz and 2600 MHz spectrum holdings.
“Following its recent acquisition of regional 1800 MHz spectrum, Optus now has more spectrum assets to expand its network and improve its 4G coverage for more Australians,” Lew said.