Optus registers impact of NBN HFC pause

Lloyd Doyle
May 17, 2018

Optus' ICT and managed services business registered a 2.8 per cent increase in net profit for the year to $817 million.

In an announcement this week the company revealed it's full-year operating revenue for the year ending 31 March 2018, had risen 3.4 percent to $8.7 billion, with EBITDA growing 3.9 percent to $2.77 billion.

Driving the profit increase was continued growth in customer numbers, with Optus gaining 384,000 mobile subscribers and 225,000 NBN broadband customers in the 12 months.

They fell 6.9 percent compared to the same quarter in 2017 "due mainly to a decline in NBN migration revenues from temporary suspension of connecting and migrating customers to the NBN Co's HFC access network in Australia and price erosion".

The company behind the NBN rollout, NBN Co, said in November previous year it would temporarily pause all new orders over its hybrid fibre-coaxial (HFC) access network in a bid to remediate technical issues relating to the technology.

Quarterly reported EBITDA declined to $712 million, from $741 million during the same period previous year, while quarterly net profit also declined to $208 million from $250 million. Excluding NBN migration revenues EBITDA and net profit increased 2.8% and 3.7% respectively.

In its fourth quarter the telco added 154,000 new mobiles services across postpaid and prepaid handsets and mobile broadband.

Optus boss Lew was satisfied the telco had delivered strong results against its plan over the past year.

The second campaign said, "The Optus Mobile Network has been ranked best overall in voice and data", and has been circulating since May 4.

In an application to the Supreme Court of Victoria, Telstra alleged that the advertisement is misleading and deceptive, and asked the court to issue an order restraining Optus from displaying the advertisement.

"Unfortunately, our competitor is clearly unhappy about losing to Optus, and has no doubt lost its sense of humour in the process", an Optus spokesperson told ARN.

"Telstra's mobile network is the best in Australia, providing the greatest coverage and faster speeds in more places and we believe advertising that tries to suggest anything else is an attempt to mislead consumers".

"Optus believes Australians should know Optus has an alternative, award-winning premium mobile network that delivers great value for customers".

Other reports by Iphone Fresh

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