Optus Profit +33%, Users Gobble GB's

Written by Oonagh Reidy     14/11/2013 | 10:25 | Category: INDUSTRY

No. 2 telco profits soar but mobile revenue declines.

Optus Profit +33%, Users Gobble GB's

Optus today reported a net profit lift of 33% to $218m for quarter to September 30, compared to the same time 2012. 

The telco's Australian consumer revenues fell 6% to $1.73 bn, blamed on cuts to Optus' mobile termination rates and service credits on mobile repayment plans. 

Overall revenues fell 15% to $2.46 bn. 

However, there was a strong take-up of My Plan which has led to increased data usage, Kevin Russell, Optus Chief Country Officer, confirmed.

Optus had 9.49 million mobile customers at the end of September quarter - 4m prepaid and 5.4m on post paid plans.

It also has 1.3 m subscribers on its new 4G network. 

Average monthly revenue per user rose slightly on prepaid but remained static for post pay users. 

Postpaid churn was 1.3%, the rate at which Optus consumers are leaving the network. 

The telco says it is transforming its business, cutting costs by $202m during the quarter, with fairer plans to "strengthen consumers trust".

Optus also said customer complaints have fallen by 36% in the last year. Previously, the network had shocking rates of customer complaints to the Telco Ombudsman (TIO).  

Earnings before tax rose 11% excluding a $23m of provision write back for base station rentals.  

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