Optus Q3 Earnings Down, Mobile Soars
Singtel-owned Optus has post a 4.5% jump in Q3 revenue to $2.41 billion, with EBITDA dropping 8.7%. It follows an 11% increase in mobile revenue, adding 129,000 new postpaid handset and 20,000 mobile broadband customers during the quarter.
For the three months ending December 31, EDITDA notched $664 million, hampered by reduced NBN migration payments and other one-off income in the previous year.
Quarterly net profit declined 31.1% year-on-year to $172 million, whilst free cash flow slumped 21.9% to $159 million.
NBN revenues were hit by the temporary suspension of customer migrations to the NBN HFC Network.
Excluding this, mass market fixed revenues remain “stable.”
The telco has recently agreed with the NBN Co to make migration payments based on agreed rollout plans.
Optus claims it now has 540,000 NBN broadband customers – up 124,000 year-on-year.Like rival Telstra, Optus has continued to invest in 5G technology, with the unveiling of Australia’s first 5G home broadband plans last month.
The telco has commenced activating 5G sites – recently in Sydney’s Kellyville – with the view of delivering 1,200 5G sites by March 2020.
“We are proud to be first in market with a 5G home broadband service,” asserts Optus Chief Executive, Allen Lew.
“Our customers can continue to expect more innovation, entertainment services, value added solutions including cyber security and game changing customer experiences in the future.”
The news follows Telstra’s half-year earnings announcement, with 5G forecast to be the “engine room” of the business.
“Telstra is 5G-ready now,” asserts Chief Executive, Andy Penn.
By contrast, Optus Business’ revenue and EBITDA recorded slower operating performance, with EBITDA and revenue impact for carriage service price competition and longer business sales cycles.
During the quarter, Optus Business notched an 11% increase in its mobile customer base.