Optus Business earnings fall continues

Optus Business earnings fall continues

1,218 staff across the business go

Optus Business earnings before tax (EBITDA) have dropped 14.8 per cent to $216 million for the full 2019 financial year, ending 31 March.

Operating revenue was down 2.7 per cent to $1.44 billion mainly due to lower revenue at Optus Business on double-digit decline in fixed voice, and a significant slowdown in customer spending especially in the government and financial sectors.

ICT and managed services revenue grew by half per cent and mobile was up by 1.4 per cent, with total revenue at $266 million.

Data and IP revenue declined 3.9 per cent attributable to price erosion and lower volumes.

Voice revenue declined 12.4 per cent in line with the industry, the company said and posting a total $243 million for the year.

"The decrease was due to steep price erosion and declines in switched voice business with enterprise customers continuing to migrate to lower cost IP-based solutions," Optus stated.

In March, Optus Business announced a five-year contract with supermarket operator Coles, which it said to be one of the largest network and ICT deals announced in Australia in recent years.

As reported at the time, Optus will partner with NBN Co to deploy fibre connections to Coles supermarkets, liquor stores, Coles Express convenience stores, distribution centres and store support centres.

Under the agreement, Optus will provide enterprise network services to more than 2,400 locations across Australia and support Coles’ 115,000 employees.

Overall, Optus revenue was up by six per cent to $9.1 billion with EBITDA down at $2.7 billion. Net profit was lower due mainly to the impact of the temporary suspension of NBN HFC migrations together with higher depreciation and amortisation costs and exceptional items as Optus continues to transform its business.

Meanwhile, Optus headcount was also down by 14.3 per cent, or down by 1,218 to a total of 7,675 employees at 31 March 2019.

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Tags optusfinancial resultsOptus Business

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