Optus Revenue Up 5.7% Despite World Cup Fiasco
Despite backlash over its World Cup streaming flop, Singtel-owned Optus has post a 5.7% year-on-year jump in Q1 operating revenue, notching A$2.1 billion from continued network and content investment.
Contrasting rival Telstra, commentators claim Optus’ decision to slash costs and head count comparatively early, appear to have paid dividends.
For the quarter, ‘mobile service’ revenue climbed 2% to A$963 million, attracting 66,000 additional new services across Optus’ Consumer and Enterprise divisions.
Mobile revenue – including equipment sales – soared 8%.
The average return per user for blended mobile and postpaid handsets slipped 2% and 3% respectively, following increased data competition and a rise in SIM only plans.
EBIT also tumbled 3.8% YoY, whilst underlying net profit slumped 5.9% compared to 2017. EBITDA margin dropped from 31.3% to 30.1%.
Cash flow for the quarter soared 8.2% to A$130 million.
Despite its World Cup streaming failure – culminating in broadcast being passed onto SBS – Optus CEO, Allen Lew, asserts football remains a “key pillar” of its content strategy, making way to become Australia’s “home” of elite international football.
“This quarter we have leveraged our investments in networks, technology and content to create sustainable competitive advantages and positive customer growth,” affirms Lew.For its mass market fixed division, operating revenue dipped 1%, driven by the temporary suspension of NBN HFC connections.
Excluding NBN migration revenues, mass market fixed revenue climbed 5% on a base of 483,000 NBN broadband customers – a jump of 30,000 for the quarter, and 204,000 for the year.
Optus’ Business division claims to have maintained its growth trajectory, following an expanded mobile network and enhanced ICT mobile services – overall revenue soared 7%.
The telco states customer satisfaction has continued to improve, with Consumer Australia’s NPS score rising to +12 for the quarter.
Optus asserts its on track to implement 5G technology in early 2019, whilst adding its 4G network covers 96.9% of the Australian population.
As previously reported, Optus showcased its 5G technology at the 2018 Gold Coast Commonwealth Games, alongside its new Innovation Hub in Sydney.