Optus Q1 Net Profit Down 32% YoY
Singtel-owned Optus has reported a 32% year-on-year drop in Q1 net profit, amid a “challenging competitive market” and the continued roll-out of its 5G network.
First quarter revenue jumped 3%, whilst EDITDA lift 5% to A$687 million.
Net profit declined a notable A$105 million, reflecting higher depreciation charges from continued investment in its mobile network and lower earnings from Optus Business.
“In the face of a challenging competitive market, Optus has delivered a set of numbers underpinned by customer growth from our investment in a premium national network and the continued execution of our exclusive content strategy,” claims Optus Chief Executive, Allen Lew.
Despite market competition, Optus postpaid customers jumped 51,000.
Mobile revenue lift 7% from higher equipment sales, whilst mobile service revenue slipped from a higher mix or SIM-only plans, and “historic data price erosion.”
Optus’ NBN customer base jumped 151,000 year-on-year, notching a customer base of 646,000.
The news comes as Optus continues to ramp up its content strategy, following its exclusive Apple Music offer on selected plans.
The telco has continued to expand its 5G network, with over 100 mobile sites on-air.
5G fixed wireless access customer trials claim to be “well advanced”, with achieved peak download speeds of 295Mbps and an average download speed of 100Mbps.