Competition bites: SingTel trims full-year margin forecast for Optus

19 Sep 2005

Singapore Telecommunications (SingTel) has reduced its forecast for full-year profit margins at its Australian division Optus, amid concerns that stiffening competition in a crowded market is undermining the unit’s profitability. SingTel says that it has revised down Optus’s EBITDA margin by one to two percentage points from its earlier forecast of at least 30%, in the wake of price cutting from smaller rivals Vodafone and Hutchison Telecommunication Australia. Telstra has also announced that competition is impacting on its bottom line and says it expects EBITDA to drop by as much as 10% this year due to falling demand for its fixed line services and slowing growth in the mobile phone market.

Australia, Singapore, Optus, Singtel Group