Critical.
Authoritative.
Strategic.
Subscribe to CIO Magazine »

Optus slashes nearly 1000 staff in a year

The telco has now let go of 962 staff, 9.9 per cent of its workforce, compared to a year ago

Optus has shed 305 staff over the three months to 31 December, 2012, SingTel announced today.

The telco has now let go of 962 staff, 9.9 per cent of its workforce, over the last 12 months. Consequently, staff costs fell 3.6 per cent.

For the six months to 30 September, 2012, Optus cut 746 staff, 7.6 per cent of its workforce.

SingTel announced its third quarter results today, with Optus' operating revenue dropping 5.7 per cent to $2.3 billion for the three months to 31 December, 2012.

For the nine months to 31 December, 2012, operating revenue dropped 4.4 per cent to $6.8 billion.

Total mobile revenue dropped 7.1 per cent to $1.5 billion for the quarter, comprising 66 per cent of total revenue.

Net profit also dropped 9.2 per cent to $160 million during the quarter.

SingTel attributed the revenue drop to the reduction in the mobile termination rate, which took effect from 1 January, 2012; a drop in equipment sales of $43 million; and service credits associated with device repayment plans reducing revenue by $28 million.

Optus added 58,000 postpaid customers during the quarter. However, it lost 36,000 prepaid customers due to churn from prepaid wireless broadband products.

Postpaid customers now make up 57 per cent of Optus’ customer base.

A lower average revenue per user (ARPU) from discounted broadband plans has seen its consumer on-net fixed revenue drop 3.5 per cent, with a total of 993,000 on-net customers at 31 December, 2012.

During the quarter, the telco extended its 4G coverage to Brisbane and the Gold Coast and has upgraded more than 4000 sites under its U900 migration program, with free cash flow dropping 30 per cent to $519 million due to higher capital expenditure.

Optus also recently let go of long-term contracts with resellers, including Telechoice and Boost Mobile.

SingTel said revenue for Australia is expected to decline by mid-single digit level.

Follow Stephanie McDonald on Twitter: @stephmcdonald0

Follow Computerworld Australia on Twitter: @ComputerworldAU

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: Boost Mobile, Optus
References show all
Comments are now closed.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: redundancies, optus, singtel
Latest Blog Posts
Whitepapers
  • Converged Infrastructure Systems Comparative Assessment
    The powers of virtualization and cloud computing have been central to innovation. Data centres have achieved a level of unparalleled utility and functionality – but at the same time creating unprecedented complexity and financial burden. Read how a proper converged infrastructure solution can change the status quo.
    Learn more »
  • The Three Essential Steps to Successful Cloud Migration
    Businesses and enterprises have quickly realised the power and efficiency of cloud computing, but migrating to the cloud can be a challenging process. This guide leads you through the three key steps you should take to assess your workload, select the most appropriate cloud model and ensure your cloud provider’s migration methodology stacks up.
    Learn more »
  • VDI Solutions Guide
    The IT industry has been abuzz promoting the idea of virtual desktop infrastructure. But despite its advantages, adoption has been slow, and many organizations have abandoned their VDI initiatives. This paper explores how a new flash-based approach can overcome the key VDI pitfalls, and deliver a solution that both end-users and IT administrators will love.
    Learn more »
All whitepapers
rhs_login_lockGet exclusive access to Invitation only events CIO, reports & analysis.
Salary Calculator

Supplied by

View the full Peoplebank ICT Salary & Employment Index


Computerworld
ARN
Techworld
CMO