Optus lifts profit 15 percent through strong mobile growth

Stuart Corner
Thursday, 12 May 2011 10:37

IT Industry - Market

Optus as reported steady growth for the full year to 31 March led by its mobile business with mobile connections passing the nine million mark.

Optus reported revenues of $9.28b for the year to 31 March, a 3.7 percent increase on last year. EBITDA grew 8.4 percent to $2.33b and net profit after tax 15 percent to $776m.

As in previous years, Optus' growth was lead by its mobile business. Optus said:" In the quarter, mobile revenue was the key contributor to revenue growth, comprising 64 percent of total revenue, one percentage point higher than the same quarter last year."

Overall mobile revenues for the full year were up four percent to $2.332b, mobile service revenue up seven percent to $1.494b and mobile EBITDA up eight percent.

In the three months to 31 March Optus added 151,000 net new postpaid mobile customers taking its total to 4.77m, a year-on-year increase of 588,000. Prepaid subs fell by 62,000 and 46,000 in the last two quarters of the year, reversing additions of 51,000 and 46000 in the two prior quarters. Overall, mobile numbers passed the nine million mark for the first time, to reach 9.068 million, up from 8.498m a year ago.

The number of 3G customers increased to 5.09 million, a five percent increase from a quarter ago. (Optus defines 3G customers as those who own a 3G device and take access to a 3G data service) This number included 1.28 million wireless broadband customers, a 41 percent year on year increase. Blended ARPU remained stable at $47. Non SMS data accounted for 19 percent of ARPU and total data 42 percent.

More and more customers are moving to cap plans. Optus said: "The sustained demand for smartphones and refreshed cap plans continued to increase the penetration of capped plans into the base. A total of 91 percent of new and recontracted postpaid customers chose capped plans this quarter. Approximately 70 percent of the total Optus postpaid mobile base were on capped plans as at 31 March 2011, up from 64 percent a year ago'¦

CONTINUED