Optus profits decline in fiscal 1H

11 Nov 2005

Number two fixed line telco SingTel Optus (Optus) has reported a 4.6% drop in net profit in the fiscal first half ending 30 September 2005, to AUD300 million; profit for the second quarter alone fell 8.1% to AUD150 million. As a result, the telco has been forced to look for ways to cut costs, and has suggested that it may to reduce its workforce. Operating revenue for the second quarter was flat at AUD1.76 billion, while operating expenses rose 3.8% to AUD1.26 billion and capex rose 25% to AUD229 million. Optus attributed the decline in profit to ‘a highly aggressive and competitive market which had forced it to take decisive actions’.

Australia, Optus