Optus Business takes revenue hit with decline in voice, ICT deals

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Optus Business takes revenue hit with decline in voice, ICT deals

Optus' enterprise business has taken a hit to its quarterly revenue due to lower ICT deals and a decline in its voice segment.

Revenue was down to $369 million for the quarter ending 30 September, compared to $392 million last year. EBITDA also declined by 7.9 percent to $57 million for the period, from $62 million the year before.

ICT and managed services declined 10 percent to $162 million from $180 million, while the mobile and data and IP segments remained steady.

Meanwhile, voice revenue took the biggest hit with 11 percent, declining to $64 million from last year’s $72 million, attributing it to price erosion and customers moving away from switched voice in favour of IP-based voice solutions.

“With expanding network coverage, Optus Business continued to connect more enterprise
customers compared to the same quarter last year, with strong growth in mobile net adds,” the company said.

“Mobile revenue increased 4.9 percent due to higher mobile service revenue and equipment sales.”

Earlier this year, Optus Business won a three-year, $6 million deal with the Department of Health to become its whole-of-department telecommunications provider.

Meanwhile Optus as a whole saw its half-year net profit take hit due to ongoing NBN migration payments and from its workforce restructure, despite a modest bump in revenue.

Net profit was down 20 percent in the half-year to $259 million, compared to last year’s $325 million. Revenue was up 5.5 percent to $4.4 billion.

Mobile revenue was a bright spot with 14 percent growth, attributed to higher handset sales, although the mobile service segment was down due to an increase in SIM only plans and data price competition.

“Optus continues to achieve profitable customer growth in the quarter and attract customers by leveraging our premium national network,” Optus chief executive Allen Lew said.

“Customer experience remains our top priority and we are focused on removing customer pain-points across the entire business.”

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