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Highlights
- Optus annual profit jumps over 600%
- Mobile service revenue up 4%
- Enterprise business still under pressure
Optus, the Australian telecommunications giant owned by Singapore's Singtel, has reported a massive upswing in its underlying annual net profit — surging 615% to reach $136 million for the 12 months ended March 31. This is a significant jump from the previous year’s figure of $19 million, which had been weighed down by a major writedown in its enterprise division.
Revenue for the year stood at A$8.2 billion, a modest rise of 1.4%. The key driver behind this growth has been the increase in mobile phone service revenues, which climbed by more than 4%. This upswing is attributed in part to recent price adjustments that helped improve margins within the mobile segment.
However, the performance of its enterprise division — which serves business and government clients — continues to lag. Revenues from this segment fell by 5.3% over the year, reflecting ongoing challenges in capturing large-scale business deals in a competitive market.
In terms of workforce, the company has made notable adjustments, reducing its average employee headcount by 8% to 6,200. This reduction aligns with its broader strategic push to streamline operations and improve cost efficiencies across departments.
The rebound in profit signals that Optus is recovering from prior setbacks and adapting to shifting consumer trends. Mobile services remain the backbone of growth, even as business-to-business operations remain under pressure.
Optus’ improved financial performance contributes positively to the overall sentiment in the ASX200, where stronger telecom sector earnings may provide momentum. Investors watching the broader index will be paying close attention to such corporate turnarounds.
Though Optus is not typically among traditional ASX dividend stocks, its earnings revival and operational changes may set the stage for future value generation that could interest long-term market participants tracking stable income-producing sectors.
As Australia’s telecommunications landscape evolves, Optus' profitability rebound could signal the start of a more competitive phase in the market. Future updates will likely focus on the trajectory of its enterprise division and how it plans to stabilise that aspect of the business while continuing to build on mobile success.
