No. 2 telco profits soar but mobile revenue declines.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.
