Optus downgrades earnings due to intense competition

20 Sep 2005

SingTel Optus, Australia’s second largest telco, has said that it could fail to reach its target of double-digit growth on underlying earnings this year because of intense competition in the fixed line market. Optus lowered its full year EBITDA from 3% to 2%, with its EBITDA margin expected to decline from 31.1% to around 30%. Shares in Optus’ parent company SingTel fell sharply following the announcement, which came just weeks after rival operator Telstra lowered its own earnings expectations.

Australia, Optus