Optus reports another profit drop

Underlying net profit drops 16.3 per cent for Q3

Optus’ reported underlying net profit of $191 million for its third quarter — a drop of 16.3 per cent from the corresponding quarter last year.

EBITDA dropped 5.2 per cent to $650 million for the quarter ending 31 December. The telco reported operating revenue of $2.21 billion, down 9.3 per cent on Q3 2015.

Optus attributed the revenue drop an Australian Competition and Consumer Commission’s decision to reduce industry mobile termination rates, higher service credits associated with device repayment plans, and a number of one-off items in Q3 2015.

Optus said it added 153,000 mobile customers during the quarter, boosting its total to 9.57 million.

“Optus is responding to moderating market conditions with an intense focus on innovative products, unique entertainment offers, and a strong network proposition,” CEO Allen Lew said.

The telco in its second quarter reported 20 per cent drop in underlying net profit.

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