Optus reports revenue decline, customer losses

Optus has blamed a drop in equipment sales, higher service credits, and the mandated reduction in mobile termination rates for a year-on-year decline of AU$86 million in mobile revenue for the last quarter.

Despite the 5.3 percent decline in operating revenue down to AU$2.12 billion from AU$2.24 billion, the company reported an underlying net profit of AU$167 million for the quarter ending June 30, up 3.6 percent. The revenue decline was offset in a drop in operating expenses for the quarter by 9 percent to AU$1.56 billion. Net profit for the quarter was up 8 percent to AU$167 million.

The company recorded a decline in the number of mobile customers down from 9.592 million in March to 9.533 million at the end of June.

Optus CEO Kevin Russell said that the company now has strong momentum after its operational restructure, and despite the mobile subscriber drop, the company is seeing an improvement in churn and complaints to the Telecommunications Industry Ombudsman down 36 percent for the year ending June 30.

"It is encouraging to see that our improving profitability is being delivered during a period of extensive operational restructuring and change," he said.

In the quarter, Optus also recorded a decline in breakage revenue for customers who have gone over their monthly plan allowance, and a decline in revenue in roaming charges due in part to the hard cap and plan overhauls introduced this year. This was partially offset by an increase in data use, the company said.