Optus sees revenue growth in third quarter financial results

By Staff Writer on Feb 5, 2008 12:28PM

SingTel Group, parent company of Optus, has delivered a third consecutive quarter of double-digit revenue growth. The Group recorded revenue growth of 11 percent to S$3.83 billion, driven by an 11 percent revenue growth in the Singapore business and the appreciation of the Australian dollar.

In Australian Dollar terms, Optus recorded a 3.6 percent revenue growth while in Singapore Dollar terms, the growth was 12 percent as the Australian Dollar strengthened by nearly 8 percent from a year ago.

Optus delivered an increase in operating revenue of 3.6 percent to $2 billion and maintained its market position through creative and innovative product launches as well as reinvigorated customer acquisition activities.

“The third quarter saw Optus increasing scale in mobile and fixed on-net; gaining profitable market share in Optus Business, prepaid mobile and Unbundled Local Loop (ULL) on-net; and delivering profit increase,” said Paul O’Sullivan, Optus chief executive.

Despite higher acquisition costs related to the growth in postpaid mobile subscribers and the lower incoming revenue from the 40 percent ACCC-mandated decrease in mobile termination rates, Optus increased its underlying net profit by 5.9 percent and operational Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) by 1.0 percent year-on-year.

EBITDA margin was 25.4 percent, down 0.6 percentage point from the last corresponding quarter, reflecting increased costs from higher customer acquisition activities and a higher mix of mobile equipment revenue.

Free cash flow for the quarter increased 20 percent to $134 million due primarily to the timing of capital expenditure payments and working capital movements, said O’Sullivan.