Optus profit falls 11.8 per cent

Optus profit falls 11.8 per cent
Full year net profit for Optus has fallen 11.8 per cent to $794 million, the result of increased competition, higher content costs and device repayment service credits.

Full year earnings before interest tax depreciation and amortisation declined by 4 per cent to $2.67 billion and free cash flow for the full year fell 19 per cent to $500 million due to higher cash capital expenditure and the payment of $134 million to the Australian Taxation Office.

Operating revenue fell by 8 per cent to $8.43 billion.

Mandated reduction in mobile termination rates from 3.6 cents per minute to 1.7 cents per minute for calls, and 7.5 cents to 0.03 cents for SMS had reduced the amount of money coming into Optus.

However, there was a 1.6 per cent rise in operating revenue to $2.11 billion and net profit for the quarter rose by 1.1 per cent to $250 million.

Optus attributed this to higher NBN revenues and equipment sales.

Optus chief executive Allen Lew said the company’s strategy was in place and delivering.

The  company has reported the strongest quarter of mobile handset growth in five years, gaining 78,000 post-paid and 64,000 prepaid services, bringing its total mobile base to 9.72 million customers. Demand for 4G services continued to grow with 256,000 new sign ups over the quarter.

“Despite heightened competition in the Australian market, Optus’ strategy of delivering customer growth through music, TV and sports content, underpinned by a robust and resilient mobile network, is on track,” Mr Lew said.

 



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