Optus Q4 Profit Up, NBN Hurt Full-Year Results
Singtel-owned local telco, Optus, has reported a 12% jump in Q4 net profit to A$228 million, citing a lift in customer growth, equipment sales and NBN migration revenue.
For the three months to March 31, operating revenue climbed 7% to A$2.3 billion, with EBITDA jumping 6% to A$748 million.
Mobile revenue lift 9%, adding 126,000 postpaid mobile subscribers during the quarter.
Free flow quarterly cashflow jumped strongly – up 25% to A$446 million.
Optus’ mass market fixed division notched a 19% lift in operating revenue, citing higher NBN migration payments. Despite this, 50,000 new customers were added during the quarter.
For the full year, Optus operating revenue climbed 6% to A$9 billion, citing “strong customer growth and higher equipment revenues.”
The telco added 379,000 new post-paid mobile customers during the year, and 137,000 new NBN broadband customers.
Full-year EBITDA slipped to A$2.6 billion, coupled with a drop in net profit from the temporary suspension of NBN HFC migrations, and higher depreciation and amortisation costs.
Annual free cashflow climbed 9% to just over $A1 billion.“Optus achieved a very strong performance in the fourth quarter underpinned by a relentless focus on delivering exceptional network and customer value to drive customer growth and engagement,” claims Chief Executive, Allen Lew.
“Optus is scaling its 5G network in preparation for a broader commercial launch later this year
which will start to see this exciting next generation technology in the homes and hands of our
customers,” he adds.
The telco has re-affirmed its exclusive content strategy, with Optus Sports broadcasting all-EPL finals of the Champions Leauge and Europa League, and the 2019 FIFA Women’s World Cup.
Optus will be the only broadcaster covering all 52 matches of the Women’s World Cup, however, many commentators remain wary following previous broadcast quality.
The telco has continued to ramp up its 5G network in preparation for a broader commercial launch this year.