Optus results reveal damage done by 2020

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Optus results reveal damage done by 2020

Optus’ full-year financials released today show the difficulty the company faced in recent months as its operating revenue dropped seven percent from last year's figures.

Operating revenue fell to $8,820 million, while EBITDA slumped 25 percent and EBIT plummeted 77 percent. Free cashflow stayed stable at $758 million.

The company said that the decline in income was due to the pandemic and travel restrictions, as well as the “structural impacts of the NBN” such as lower migration revenues, reduced sales and leasing of equipment, and lower margins as customers used more of the bandwidth they were paying for.

“This has been a challenging year with COVID-19 and structural NBN impacts affecting the whole industry,” Optus chief executive Kelly Bayer Rosmarin said.

“However, Optus continued to prioritise keeping Australians connected, ensuring our teams were safe and employed, and investing in our network, customer service and digital experiences. During the second half of the year, we’ve seen improvements across the board as a result of disciplined execution of those priorities.” 

Revenue in the second half of the financial year saw a 5 percent year over year decline due to the drop in NBN migration revenue, however, it was a 5 percent increase over the first half of the year.

EBITDA grew 5 percent and EBIT grew 73 percent half-over-half in FY20/21, thanks to stronger equipment sales, improved mobile net connections and average revenue per user growth, the company said. 

Equipment sales revenue increased 2 percent year on year due to premium handsets sales. 

Bayer Rosmarin stated that the second half revenue growth and disciplined price management indicates "new momentum for Optus."

Optus Enterprise saw EBITDA growth with improved sales volumes, cost stewardship and the shift to remote and hybrid work. 

“We will continue to deliver customer-led differentiation through digitalisation, the Optus Living Network and 5G speed leadership, and it’s deeply rewarding to see the satisfaction this brings to our customers,” Bayer Rosmarin said

Optus also completed the acquisition of the Amaysim mobile business in February of this year.

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