Origin Energy grows broadband base

Origin Energy ended FY19 with around 8000 broadband customers, the company reported today.

Origin began offering NBN- and ADSL-based broadband services in October. The launch followed a six-month trial where a small team of inbound sales agents signed up more than 1500 customers to broadband services.

The move to broadband was a “natural extension” of the residential services offered by the company, Origin head of retail Jon Briskin said at the time. Origin offers discounts to customers that use both its broadband and energy services.

“We see this as a natural extension of the services we already offer in the home, and by increasing the range of those services, over time we will be able to give customers discounts based on the number of services they have with us,” Briskin said.

“Our aim is to create more engaged and loyal customers, and provide Origin with a point of difference in an increasingly competitive retail market.”

Earlier this year rival energy company AGL confirmed that it had considered acquiring telco group Vocus.

“AGL is exploring investment opportunities across three focus areas: optimising our existing portfolio for performance and value, evolving and expanding our core energy markets offerings, and creating new opportunities with connected customers,” AGL CEO, Brett Redman, said.

“We believe there will be material opportunities for AGL as energy and data value streams continue to converge and the traditional energy sector accelerates its transformation.”

AGL was granted an exclusive period of due diligence but made a swift decision to not follow through on an acquisition (AGL was just one of a string of potential purchasers of Vocus).

Broadband is part of Origin’s focus on growing new revenue streams, including its centralised energy services business, and solar and storage, the company said today in its full year results reporting.

The company today reported a full year net profit of $1.21 billion, compared to $218 million in the prior comparable period. Group revenue was down 1 per cent to $14.7 billion for the 12 months to 30 June.

Origin CEO Frank Calabria said the company was “embracing a decentralised digital future,” through solar storage, analytics and digital capabilities.

The CEO said that “over time, a new connected business model, both in front and behind the meter” will be “key to a changing energy landscape.” Origin said that its “digital first” approach meant it was engaging more customers using online channels.

The company reported that digital interactions and self-service increased from 63 per cent in FY18 to 83 per cent, while service call volumes dropped by a fifth. Sixty-three per cent of its customers are now receiving bills electronically.