Optus registers growth in NBN revenue

Optus now has 279,000 customers on the National Broadband Network. The telco revealed today that in its first quarter its consumer fixed-line revenue grew 13.2 per cent, which it says was mainly attributable to NBN migration fees and a growth in its NBN customer base.

It reported revenue of $333 million for its consumer mass market fixed revenue in the three months ended 30 June, up from $295 million in the prior comparable period.

Optus’ underlying net profit dropped to $188 million in the first quarter, down 3.2 per cent.

However, the telco reported operating revenue was up 4.8 per cent to $2.1 billion, and EBITDA grew from $645 million to $662 million.

The telco added 85,000 4G customers during the quarter, bringing its total to 5.88 million.

Optus’ enterprise income was largely steady at $380 million (down 0.3 per cent), but the company revealed a decline in enterprise voice, data and IP services — offset by growth in its ICT and managed services offerings.

ICT and managed services revenue grew 3.1 per cent to $146 million in Q1.

Optus said the drop in enterprise voice revenue — 6.4 per cent to 79 million — was attributable to price erosion and declines in switched voice as businesses migrate to lower cost IP-based voice solutions.  

“Our first quarter result is built on consistent investment in our network and the creation of content and new services that resonate with customers, with the promise of more to come,” Optus CEO Allen Lew said in a statement.  

Last month Optus revealed plans to invest $1 billion by the end of the financial year to expand its mobile network in regional Australia.  

The telco said it will install 500 new mobile sites in regional and remote Australia (114 of them will be co-funded by the federal government’s Mobile Blackspots Program).

The investment program will also include the upgrade of 1800 3G sites to 4G, and the rollout of additional capacity to more than 200 existing 4G sites. In addition, Optus said it will acquire additional spectrum and install more satellite-powered small cells in regional areas.

Lew has said the plan “represents one of the single largest investments in regional mobile infrastructure in Australia’s history.”