Optus Net Profit Down 36%
Singtel-owned Optus has post a ~$60 million drop in quarterly net profit, notching $105 million versus $165 million the same time last year. The telco attributes lower NBN migration payments for the decline.
Earnings follow a slump in half-year results, with net profit down 20% YoY to $259 million.
An internal restructure has also seen staff numbers drop from 8,278 last year to 7,441.Despite recent results, Optus Chief, Allen Lew, assert its continued to achieved profitable customer growth, driven by an exclusive sports and content strategy.
For the quarter ending September 30, Optus post a 5% YoY jump in overall revenue to $2.1 billion, citing notable post-paid customer growth.
Amidst strong market competition, pre-paid handset customers plummeted 120,000. Mobile service revenue also dipped $943 million.
By contrast, post-paid mobile subscribers across Optus’ consumer and enterprise division jumped 93,500, whilst mobile broadband customers lift 26,000.
Like rival Telstra, Optus has also been stung ~$10 million in penalties, following an ACCC investigation into its direct third-party billing service.
Despite Lew’s remarks, Optus has also been combating a PR debacle, stemming from its poor streaming coverage of the soccer World Cup, culminating in broadcast being passed onto SBS.
Further information is available on Singtel’s website here.