Optus has managed to lift its annual net profit by 1.5 per cent to $787 million despite intense competition from its rivals and regulatory changes.
The result for the year to March 31 was unveiled as Optus, which is owned by Singapore Telecommunications, announced its fourth quarter net profit also rose 2.1 per cent to $267 million.
However, revenues dipped 1.1 per cent in the quarter to $2.296 million.
In the year to March 31 operating revenue was up 0.9 per cent to $9.37 billion, supported by mobile revenue growth of 1.6 per cent.
Optus chief executive Paul O’Sullivan said its revenues had come under pressure from intense competition during the quarter and a mandated cut in mobile phone termination rates from nine cents a minute to six cents.
Mobile phone termination rates are charged when a mobile phone customer rings the customer of another telco.
The telco of the customer who receives the call then charges the telco of the caller a fee for terminating the call on their network.
“In the last 18 months we’ve seen a step up in competitiveness intensity as well as some regulatory decisions which have slowed our growth,” he said.
Optus had announced a restructure earlier this year which Mr O’Sullivan said would help the telco increase customer satisfaction and retention in what he described as “an increasingly saturated market”.
“We’re the only telecommunications company in Australia to have a division solely focused on driving a really positive outstanding customer experience,” he said.
While the number of Optus mobile subscribers lifted 4.6 per cent to 9.068 million in the year, the telco was hoping to attract more with increased data services and content and better indoor coverage in capital cities.
The telco would also appeal a recent Federal Court decision which banned its customers from recording and watching free TV content on delay on their mobile phones on its Optus Now service.
Mr O’Sullivan said Optus would seek leave to appeal the ban in the High Court because Australians should be able to use the latest technology to watch free content, including the major football codes, at a time of their choosing.
The decision also impacted on Optus’ right to use the technology to increase its competitiveness, he said.
Mr O’Sullivan said Optus would expand its 4G network, which it launched in Newcastle last month, and would extend to Sydney, Melbourne and Perth by mid year.
The telco planned to grow its fixed line business by offering more mobile and broadband bundles to its customers.
Optus’s results were announced as SingTel said its net profit for the year to March 31 was $S3.989 billion ($A3.17 billion), up 4.3 per cent on the previous corresponding period.
Operating revenue was $S18.825 billion ($A14.95 billion), up 4.2 per cent.
