FY 14 profits up, but sales slip.Optus profits rose 15% to $835 million for the year to March 31, although it suffered 5% decline in revenue to $8.4bn, it said today.
The profit lift was attributed to tighter cost control and yield improvement.
Q4, too, witnessed a slump.
EBITDA fell 6% while profit declined 10% or $26 million blamed on depreciation and amortisation charges due to higher mobile network investments.
Quarterly operating revenues slumped 5% to $2.06bn, reflecting lower equipment sales, fixed and mobile revenues fell 4.2%.
4G was the big growth factor for Optus mobile, despite total subscribers dropping 1.7% to 9.4m for the year.
During the quarter, 342,000 mobile customers were added, bringing the 4G customer base to 2.15 million, up from 1.81 million a quarter ago.
Monthly postpaid mobile churn fell from 1.6% to 1.3% this quarter, its lowest level in more than seven years.
The telco says it wants to improve customer experience and capitalise on growing demand for mobile data.
“Optus’ strong full year earnings performance demonstrates we are taking the necessary steps to transform and restructure the business strategically for sustainable profit growth,” Paul O’Sullivan, Country Chief Officer, Australia, said.
“We have built a solid foundation with our customers by raising service levels and significantly lifting customer satisfaction. This reflects major investments in customer experience and networks. Our focus now is to leverage this strengthened position to drive renewed customer growth,” he said.
The profit result was also impacted by a cautious business environment.
Optus’ free cash flow declined 15% to A$903 million due to higher tax payments and mobile investments.