Optus Q4 Revenue Down 9% Amid COVID19 & Price Competition
Singtel-owned telco, Optus, has reported a 2% decline in full-year revenue to A$ 8.95 billion, following a “challenging fourth quarter” and higher NBN migration revenue offsetting lower equipment and service revenues. In the March quarter, Optus’ net profit fell by 84% to A$ 37 million, compared to last year’s A$228 million.
For Q4, operating revenue declined 9% year-on-year to A$2.1 billion after COVID19 prompt lower service and equipment sales revenue.
Quarterly mobile service revenue slipped 6%, citing a lift in a mix of SIM-only customers and continuing data price competition.
The telco states consumers are holding onto handsets longer, with equipment sales decreasing sharply from lower sales of mobile devices – also hampered by delivery disruptions from a major logistics supplier.
For the full-year ending March 31, Optus added 141,000 new post-paid mobile subscribers and 251,000 new NBN broadband customers.
EBITDA slipped 2% to A$2.65 billion, hampered by lower contributions from Optus Business and retail fixed and equipment sales revenue.
Full-year net profit notched A$402 million.
Fourth quarter fixed revenue dropped 7% as Optus continues to transition customers to the NBN.
For the quarter, the telco recorded 45,000 new NBN customers, nothing total Optus NBN customers to 848,000.
“It has been a challenging year for our industry as consumer demand has slowed compared with the previous year, and these challenges have intensified in the last quarter as Australia managed through natural disasters and COVID-19 impacted the economy,” states Optus Chief Executive, Kelly Bayer.
“I am confident that the fundamentals of our business remain strong and I am optimistic that our strategy – underpinned by an unwavering focus on our customers – will continue to drive our performance as economic conditions and consumer sentiment recover.”