Optus Profits Slip 17.3%
Optus-Singtel have filed their latest quarterly earnings numbers, reporting a rise in underlying profit but an overall decline in net profit.
The company brought in a net profit of $188 million, a 17.3% drop compared to 2015’s results.
While Optus’ EBITDA margin improved 1.3 percentage points to 29.5%, their actual quarterly EBITDA of $650 million, a drop 5.2% on the previous year.
In a statement Optus attributed the fall in earnings to the Australian Competition and Consumer Commission’s mandated reduction of industry mobile termination rates, higher service credits associated with device repayment plans, and one-off items in the corresponding quarter last year.
Optus reported operating revenue for $2207 million for the final quarter of 2017, falling 9.3% compared to the previous year’s $2433 million.
Breaking that number down: revenue from fixed services experienced minor growth to $468 million, courtesy of a gradual increase in NBN sign-ups.
Meanwhile, mobile equipment accounted for $433 million with Optus adding 94,000 postpaid and 43,000 prepaid customers to its base. Finally, outgoing mobile services contracted to $866 million and incoming services to $51 million.
Allen Lew, Optus Chief Executive Officer said, “Optus is responding to moderating market conditions with an intense focus on innovative products, unique entertainment offers, and a strong network proposition.”
“Our network strategy, which is focused on delivering reach, capacity and reliability in both metropolitan and regional areas, is delivering real choice for customers. With our continued commitment to investing in regional areas, which has been boosted by the recent Mobile Black Spots Funding announcement, we are expecting to make further network improvements in 2017 and beyond,” Mr Lew said.