Optus lifts profit despite fall in revenue

Optus has shrugged off a fall in revenue to lift its quarterly net profit by close to eight per cent.

Optus has lifted its quarterly net profit after cost-cutting measures offset a fall in revenue.

The telco recorded a net profit of $167 million for the three months to June 30, up nearly eight per cent on the $155 million recorded during the same period last year.

Operating revenue fell more than five per cent to $2.12 billion during the quarter, from $2.24 billion last year.

But that was more than offset by a nine per cent fall in operating expenses, driven by lower selling and administrative costs.

The company said revenues from its mobile division fell six per cent due to a mandated reduction in mobile termination rates, decreased equipment sales and higher service credits associated with device repayment plans.

Optus chief officer Kevin Russell said the rise in profit occurred as the company tried to restructure its business in order to lift potential future earnings from growth in mobile data usage.

"It is encouraging that our improving profitability is being delivered during a period of extensive operational restructuring and change," Mr Russell said.

Mr Russell said the company was focused on building its mobile network.

The company is working to strengthen its 3G network and extend its 4G network to reach more than 70 per cent of Australia's metro population by 2014.


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Source: AAP


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