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Optus lifts full-year profit 2.8% to $817m

17 May 2018

Altogether, Optus' earnings before interest, tax, depreciation and amortisation (EBITDA) for the year grew by 3.9 per cent, to just under $2.8 billion, underpinned by the addition of 384,000 new mobile subscribers.

However, it said, "excluding NBN migration revenues, operating revenue rose 5.6 percent and EBITDA increased 2.6 percent due to strong mobile customer growth".

However, NBN Co's decision to pause its connection of households using existing pay-TV cables, known as HFC, hit Optus' net profit in the March quarter, which was down 16.7 per cent on the previous March quarter.

The company said it now had 6.33 million 4G customers, up by 537,000 year-on-year, and that its mobile network reached 96.9 percent of the population.

Quarterly reported EBITDA declined to $712 million, from $741 million during the same period past year, while quarterly net profit also declined to $208 million from $250 million. This was driven by strong customer growth, more equipment sales and increased revenue from ICT and managed services, Mr Lew said. It added 154,000 new mobile services for postpaid and prepaid handset and mobile broadband in the quarter.

"This financial year Optus reached the milestone of 10 million mobile customers who are attracted to our award winning national mobile network, unique content and competitive plans". "The P3 report is not a sufficient basis to support the claims made by Optus and in fact ranked Telstra best for data performance".

Speaking on the results, a Telstra spokesman said, "We are pleased the court has heard our case that the Optus network advertising is misleading and has put a stop to it pending a final hearing".

"Unfortunately, our competitor is clearly unhappy about losing to Optus, and has no doubt lost its sense of humour in the process", an Optus spokesperson told ARN.

Optus says the financial year focus was on expanding and building its mobile network nationally, spearheaded by a $1 billion investment in its regional network to deliver an additional 500 new mobile sites by mid-2018o- including 114 which will be part of the Mobile Blackspots Program.

"Optus will continue to invest and compete for customers across cities, in regions and rural locations with a premium quality network that continues to improve, expand and deliver customers great value and must-have sports and entertainment content".

Optus lifts full-year profit 2.8% to $817m