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Optus yearly net profit up $835 million

Nermin Bajric | May 15, 2014
Optus ended its 2014 financial year on March 31 up $A835 million in net profit, an increase of 14.6 per cent on the previous corresponding period.

Optus ended its 2014 financial year on March 31 up $A835 million in net profit, an increase of 14.6 per cent on the previous corresponding period.

The Australian telecommunications provider attributes the results to strong cost management and yield improvement, with country chief officer, Paul O'Sullivan, stating the company has taken the required steps to transform and restructure the business for sustainable profit growth.

The revenue comes despite a five per cent dip in revenue to $A8.46 billion and more than a 15 per cent drop in free cash flow to $A903m.

Earnings before interest, tax, depreciation, and amortisation amounted to $A2.5 billion, up 5.1 per cent.

The fourth quarter of Optus' financial year ended on negatives across the board.

Net profit fell $A26 million "as depreciation and amortisation charges increase from a higher level of investments in the mobile network" and "a cautious business environment and the recognition of $A25 million non-recurring contracted revenue in the corresponding quarter for the prior year," the telco reported.

Revenue and EBITDA decreased five and six per cent, respectively.

Optus increased its 4G customer base in the fourth quarter by 342,000, taking its customer count to 2.15 million, up from 1.81 million in the previous quarter. The telco claims its 4G network reaches 75 per cent of "the metropolitan population" and that its 3G coverage extends to 98 per cent of the national population.

"The 2015 availability of 700Mhz and 2600MHz nationally means we are preparing our network to provide 4G services nationally including key regional areas," O'Sullivan said.

 

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