Optus profit down in Q1

Telco reports net profit of $173 million for first quarter

Optus has registered an 11.9 per cent decline in its first quarter profit. The telco reported a Q1 net profit of $173 million, down from $196 million in the prior corresponding period.

In a statement the telco said that excluding exceptional items relating to a provision for workforce restructuring, its underlying net profit declined 1.9 per cent due to higher financing costs.

EBITDA revenue grew 0.7 per cent to $645 million, while operating revenue declined almost 13 per cent to $2 billion.

The telco said that the Australian Competition and Consumer Commission’s decision to cut mobile terminating rates had an impact on revenue, along with higher service credits associated with device repayment plans, and lower equipment sales

The telco said it added 19,000 net new postpaid services, but its prepaid base declined by 24,000.

“This was a very busy quarter, as price competition remained intense, especially in the MVNO market,” CEO Allen Lew said in a statement.

“We’ve competed effectively with our branded, wholesale and fixed line products, and have focused on delivering a quality live video experience, starting with the launch of the Optus Sport channel in early July. We have already received some very positive responses from customers who’ve seen our first live broadcast of international soccer games.”

“In the coming quarters, Optus will continue to strengthen and expand its national 4G network and enhance its fixed network to deliver a market-leading, multi-media entertainment experience for customers,” the CEO said.

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