Optus net profit up 16%

Phone carrier Optus has posted annual net profit up 16 per cent, saying its fourth quarter was its strongest in five years in adding new mobile customers.

Optus, a subsidiary of listed Singapore Telecommunications Ltd, said in a statement on Thursday that net profit for fiscal 2010 was $A676 million.

Operational earnings before interest, tax, depreciation and amortisation (EBITDA) were 4.2 per cent higher at $2.15 billion, with an operational earnings margin of 24.1 per cent.

Optus chief executive officer Paul O'Sullivan said the carrier had added 254,000 new mobile customers in the fourth quarter of fiscal 2010, making 709,000 over the full year.

"Optus's strategy to provide innovative, value driven offers as well as exceptional customer experience is clearly reaping results with six consecutive quarters of double-digit mobile service revenue growth, the strongest quarter for new mobile customer additions in five years," Mr O'Sullivan said.

Optus said mobile service revenue grew 11 per cent, and EBITDA margin was 30 per cent.

Optus said it delivered a strong set of results for the fourth quarter to March 31 with operating revenue rising six per cent to $2.23 billion.

Operational EBITDA grew five per cent to $610 million in the quarter, while net profit grew 14 per cent to $220 million.

Optus said it added 254,000 new mobile customers in the fourth quarter, its strongest quarterly performance in five years. Postpaid subscribers increased 17 per cent year-on-year and now comprise 49 per cent of the total base, up three percentage points from a year ago.

The number of 3G subscribers increased to 3.61 million including a base of 907,000 wireless broadband subscribers.

The Singtel group's revenue grew 25 per cent to $S4.47 billion.

In Optus Business and Wholesale, the company said strong satellite revenue growth plus revenue from major new customers had been offset by lower wholesale international voice revenue.

EBITDA grew four per cent and EBITDA margin improved one percentage point to 28 per cent.

Optus Business fixed voice traffic grew for the first time in seven quarters, and a decline in voice revenue moderated to one per cent.

Total on-net broadband customers at March 31 were nine per cent higher at 920,000.

Optus says operating revenue and EBITDA for fiscal 2011 were expected to grow at mid single-digit levels.

The company is recommended a final ordinary dividend of eight cents a share, bringing total ordinary dividends for the year to 14.2 cents, an increase of 14 per cent from a year ago.

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